Hi all,
loving the forum, and learning heaps!! i have a question I was wondering if anyone could help me with:We have recently rented out our PPOR, and are now renting ourselves in a different suburb. I understand our PPOR is CGT exempt for 6 years provided we continue to rent ourselves.
BUT… We are contemplating selling our PPOR and buying another in our new suburb. In order to make the most of not paying CGT, do i need to have sold and settled completely on my old PPOR Before i sign anything with my new PPOR ???
My finance broker has told me about being able to do a 'security swap' and have both properties settle on the same day, but would doing this void my CGT exemption on my original PPOR??
i hope my question makes sense!!!
many thanks
natalieHi Natalie,
There is a 6 month overlap period, where you can have two PPOR's. This was introduced for the very reason you describe, for people who have bought a new PPOR before selling the old one.
The only complication is the fact that your current PPOR is being rented. The 6 month rule does not apply if :(b) your existing main residence was used for the * purpose of producing assessable income in any part of that 12 month period when it was not your main residence.
s118-140.The other factor to remember is CGT is based on contract date, not settlement date, so a 'security swap' at date of settlement will have no effect on CGT.
If you sign the contract for sale of your old PPOR BEFORE you sign to buy your new PPOR you will have no CGT to pay.
thanks so much dan42!!!
just the answer i was after. much appreciated!!!!
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