I purchased an IP approx 10 years ago, which is all but paid off other than a small mortgage, and am looking to sell the property to pay off the outstanding mortgage on my PPOR which is much larger and not tax deductable, then reinvest in another IP.
Basically I want to shift my debt and get a different IP with more potential.
If I sell the IP today, I would be up for CGT.
My questions are:
Can I move out of my PPOR and into my IP, sell it, and save any CGT?
If so, how long do i need to live in it to do so?
Does it matter if I do or do not rent out my current PPOR in the mean time?Much appreciated for any advice.
Hi,
1. You can claim any place as your residence but only one place will be your PPOR and only one of them can claim GCT exception at any one time.
2. If this was your IP to start with, then it;’s to late to be excepted from the GCT – it had to be your PPOR then IP …in that case as long as you did not have a 2nd PPOR and you sell within 6 years you be fine – but not in your case. sorry3. You will have to pay only half of the GCT ( im guessing you had this place for more then 12 month)
4. By living in the place for a certain amount of time- you can dilute the GCT payable to a point.
5. GCT will be calculated based on the % you had this as a IP.
Good luck
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
unless you had previously lived in the property by moving in now you would not be able to save much tax at all.
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
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