Hey all
Could you please advise me what PPOR is. Can you break it down for me and tell me how this effects CGT
PPoR – Principle Place of Residence (your home that you live in).
Is not liable for any cap gains tax if you sell it, unless you use it as an Investment Property (I.P) for longer than 6 years before you sell.
After 6 years as an I.P it then becomes liable for cap gains tax (CGT) but is pro-rated; you only pay CGT on the amount of years as an I.P after 6 years.
A PPOR, called a 'main residence' by the ATO can be rented for up to 6 years and if sold during this time it may be exempt from CGT as long as you are not claiming another property as your main residence at the same time.
You may have to pay CGT on the sale of your main residence in some circumstances including:
– If you have run a business from the property, or used it to produce income
– If it over 5 acres, only the first 5 acres are exempt.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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