All Topics / Help Needed! / Capital Gains Tax advice

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  • Profile photo of Sydney321Sydney321
    Member
    @sydney321
    Join Date: 2012
    Post Count: 1

    Hoping for some advice from the forum to assist with my current situation & how to minimise Capital Gains Tax.

    Combined, my wife and i have 3 properties in NSW, one is our current place of residence, two are IP’s. Details, ownership and timing of them are as follows:

    IP#1 – this is a 2 BR apartment; bought under my name only whilst still single; lived in it as my PPOR as soon as i bought it & did so for 2.5 years. Is now rented out and has been so for 1.5 years.

    IP#2 – this is a 3 BR house; bought under my wife’s name only while she was still single; she lived in it as her PPOR as soon as she first bought it & did so for 4 years. Once we were married I moved in with her for approx 8 months prior to buying our current place of residence. This IP is now rented out and has been for approx 1 year.

    Current Place of Residence – 3 BR house; bought under both my wife and my name as joint tenants.

    I am thinking of selling IP#1 but would like some advice on Capital Gains Tax.

    – as it was initially my PPOR and i am still within the 6 year period, does this make IP#1 exempt from Capital Gains Tax?
    – if IP#1 becomes exempt from Capital Gains Tax for the above reason, does this mean we are liable for Capital Gains Tax on IP#2 &/or our current place of residence if we sell within 6 years of living in them – even if they were bought under different names? (i.e. IP#2 was bought under my wife’s name whereas IP#1 was bought under my name)

    Hopefully the above is not too confusing……

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Couples can only claim one property as their main residence for CGT purposes between them. By couples I mean spouses, so if you lived together before marriage this would count.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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