CGT moving out of PPOR and then moving back within 6 years

Hi

I'm in QLD and looking at entering into a contract with an extended 90 day settlement, and which gives me the right to assign the contract prior to settlement (idea is to tidy up and onsell the place prior to settlement).  However I have it in my head that these assignment clauses can sometimes trigger a 'double (stamp) duty' problem.

Is anyone able to advise whether this is correct or not.  Many thanks for your time

Hi

I am also interested in the 6 year rule and the point that Dan made about only claiming 1 property as your PPOR confuses me.

I bought an apartment in 2009 lived in it until renting it from 2010, meaning I should have until 2016 to sell it and claim benefits under the 6 year rule. Since I have been renting the apartment from 2010, I have obviously moved into another house, my current PPOR, so does that mean that I can't claim CGT benefits on my current PPOR since I have already claimed CGT benefits on another property? We would be looking to move from our current PPOR in 10-15 years' time.

Cheers,

Hi Chris- you can only claim 1 PPOR at any one time. So if you move into a new PPOR, your old PPOR is no longer covered by the CGT exemption. Hoever you don't have to decide which one to call you PPOR until you sell so you can decide which one to call your PPOR when it comes time to sell to get the best tax outcome.

If you could claim more than one PPOR people with multiple properties would just say they have moved from house to house and never pay CGT which is ridiculous.

Cheers,
Luke

Thanks Terry – much appreciated.  A costly mistake avoided!!!

Hi Terry- Do you need to tell the Land Titles Office (or whatever it is called) what your PPOR is so they can work out whether you need to pay land tax? So if you tell them what your PPOR is, does the ATO have access to this information when it comes time for CGT?

Cheers,
Luke

Yes, the land tax office needs to know. They have different criteria too.

In NSW there is a 6 year exemption for absence from the main residence but it is much more complex than the income tax version. Very hard to qualify for too.

You will probably be exempt from land tax on the NSW one. You will need to look into the land tax requirements for ACT to see if you need to pay land tax and if there are any exemption provisions for absence from main residneces (assuming it was a main residence before). I don't know anything about ACT and land tax.

CHris, i am not following totally.

If you transfer ownership you are out of the picture. WHen you evenutally sell the partner will be up for any CGT and may not be able to claim an exemption for yourshare if he didn't live in that share and establish it as his main residence. He may also miss out on claming the exemption on the other share of the house that he owned from the beginning if you had claimed a main residence elsewhere during the same time period .