CGT on PPOR

Hi new2invest..

Basically no.. sale of your ppor will not be a cgt event.

That said.. there’s a few things which may mean your only eligible for a partial exemption – the period of time between purchasing and moving into the home may be relevant, in short you need to move in “as soon as is practically possible”. Also, if your running a business from home (even if its not your primary source of income)

Also, you may move out whilst renovating, provided that you move back in for at least three months after the renovations are completed, and still be cgt exempt for the entire period of ownership.

There’s some good info here:
http://www.ato.gov.au/individuals/content.asp?doc=/content/36883.htm

Hope that helps,

Hi kenny,
your absolutely right, the sale will be a cgt event, but also exempt.

Re: moving out whilst renovating, I simply meant that you didnt actually have to live there during the renovation for the main residence exemption to still apply. I should have been a little more concise, (now I look at my comment it really doesnt make much sense in relation to this situation) What I failed to point out is that if you dont actually live there subsequent to completing the renovation, you can still extend the main residence exemption.The three month thing is more relevant to situations where the property was not your main residence prior to renovating. My apologies.

literature:
extending main residence exemption:
http://www.ato.gov.au/individuals/content.asp?doc=/content/36887.htm

renovating prior to moving in:
http://www.ato.gov.au/individuals/content.asp?doc=/content/36883.htm