All Topics / Help Needed! / Tax on selling PPOR? -(have lived there for about 9 months) .HELP?

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  • Profile photo of gocoastalgocoastal
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    @gocoastal
    Join Date: 2007
    Post Count: 14
    January 21, 2008 - 1:09 pm

    I am looking at selling my place of residence where i currently live.I am looking at moving into a current investment property i have.What tax would i have to pay ,if i have not lived in my current residence for 12 months.There is also a possibility , by the time the home sells, and transfer date etc, it could be a couple of months or so, which could take the total time of ownership to 12 months.Any help on this issue would be appreciated.THX

    Profile photo of elkamelkam
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    @elkam
    Join Date: 2006
    Post Count: 722
    January 21, 2008 - 1:44 pm

    Hello gocoastal

    The 12 month rule you are referring to is for CGT relating to IP's not PPORs. Assuming that your current home has never been an IP for you there should be no CGT to pay.

    However if you received the FHOG or reduced stamp duty on the purchase because it was your first PPOR then you may need to stay in for longer. This is state dependent I think.

    FYI I believe that CGT is calculated from time of contract signing not settlement.

    Best to give your accountant a quick ring before you sell.

    Cheers
    Elka

    Profile photo of gocoastalgocoastal
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    @gocoastal
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    January 22, 2008 - 9:46 am

    Thanks very much.Yes it has never been an IP , therefore there should be no CGT ?I guess..

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 22, 2008 - 9:48 am

    No none at all.

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
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    January 22, 2008 - 1:12 pm

    Generally you can only have one main residence at any one time, so if you claim the main residence CGT exemption on the one you are selling you cannot claim the new property as your main residence at the same time.

    But if you limit the cross over to 6 months, you may get the CGT exemption on both properties under s118-140 of the ITAA 1996, http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.140.html

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of blazeblaze
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    @blaze
    Join Date: 2007
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    January 23, 2008 - 5:26 am

    I'm interested in that ITAA. Can someone help re-write it for me in plainer English? I read that a dozen time cant seems to get my head around it ^_^

    Profile photo of TerrywTerryw
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    @terryw
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    January 23, 2008 - 11:29 am

    My interpretation is that you can have 2 houses as your main residence for a period of 6 months, with overlapping ownership, if you are moving from one house to the other.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of seantgseantg
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    @seantg
    Join Date: 2004
    Post Count: 10
    February 28, 2008 - 11:07 pm

    We have been living in our main residence for only 6 months.  We are selling.  Are there any taxes to be paid if the main residence is sold under 12 months of living in it?

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