hi,
i purchased a property in Jan 2005 and lived there for 14 months. I was then transferred for work so rented out the house. I subsequently decided to stay where i was transferred and purchased a property there in may 2007. I am now selling the first property.
Can i claim cgt exemption up to may 2007 based on the 6 year exemption rule and thus pay cgt only on 2 years of the 4.5 i have owned it?
would appreciate advice
Hi, am not sure but can't you claim all 4.5?
Pls check with accountant cos I'm not sure either.
KY
Hi Tommy12, yes the 6 year cgt exemption applies. You lived there for more than 3 months (14 months) hence satisfied occupancy. You can only have one main residence at a time. The election is made via your Tax Return. So yes the cgt exemption can be claimed upto may 07 (date/time of switching official main residences)
Linda
Fletcher Tax Accountants
http://www.fletchertaxaccountants.com.auYou would have two options:
a. treat your original property as your PPOR until sold – exempt from CGT. Therefore your second property would not qualify for CGT exemption until sale of first, but (during such periods as you had not received income on the second property) your rates, interest, insurance, repairs on the second would form part of its cost base
b. treat your original property as ceasing to be your PPOR in May 2007. This means the cost base will be set at its value as at that date, so you may or may not have a capital gain depending on what has happened between May 2007 and date of saleHi,
Can I just live in my property after 5 years and again put it on rent and never pay CGT. I am renting now and have a property in WA, but for how long I have to live in or leave it vacant before renting it out for another 6 years and claim Main Residence exemption.
Regards
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