All Topics / General Property / FHOG & PPOR when moving interstate!
Hi guys,
I've spent a few weeks searching for some concrete answers to the below, however most responses I find are conflicting or not convincing. I hope you are able to help!
Situation:
– Purchased my first property off the plan (in Victoria), due for completion in Feb 2011
– Eligible for $25k total in FHOG (=new home, grant + bonus + boost)
– Intent was to move into the apartment as soon as construction had finished and the cash had settled.
– I am now moving to NSW for work on a 2-3yr contract, where I will RENT only.
– I will still set the apartment up as if I were living there, i.e. all bills etc, and no one else will occupy it, as I want somewhere to stay when I come back for weekends/holidays.Questions:
1. Am I still eligible to receive the FHOG payments on this apartment, even though I will only be coming back 2-3times per month on weekends?2. Are the PPOR requirements the same for FHOG as for the CGT exemption? As I understand it CGT is based on intent, including moving in furniture, having name on bills/utilities, being on the electoral role etc….however FHOG is based on physically being present in the apartment for a 6month continuous period.
Logically, as long as I make normal PPOR arrangements and don't make an income from the property then I should be able to receive the FHOG?
Hopefully someone will be able to confirm/deny this for me, as it is getting a bit confusing and stressful!
Thanks again
You will need to meet the requirements of 'living' there. So you should look at the OSR site and see if there are any rulings which define 'live in'. Probably best to try the FHOG Act first. I think the ruling there is that you must live in the property for 6 months starting within the first 12 months.
The ATO requirements will be different to the OSR which are State based, but they will be similar. For the CG side the meaning of main residence or principle residence is outlined in a ruling. It includes things such as where you consider your home to be, address on electoral roll, connections of services etc. Once you can classify it as your main residence you can rent it out for up to 6 years and avoid CGT under s118-145 of the ITAA.
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
I guess you can ask the OSR if there are any exemptions available.
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