This question relates to the tax status of properties. I am looking at investing in a second property. I would like to live in it for a year before I decide which of the two properties I will then own will be my primary residence for ATO purposes. How easy or difficult is it to swap between homes as primary residence? Any views? Thanks in advance.
Best to ask an accountant experienced in property investing for your particular circumstances and what would be best financially.
my understanding is that you are free to decide and nominate one or the other as your ppr – if you have moved out of your ppr, you can still nominate it as ppr for up to six years.
to be able to have a place as a ppr, you have to actually move into it and cha nge your address to it, but once in, you don’t have to stay for any nominated period.
so you can choose one or the other, however, what would drive the decision would be likely costs and possible deductions and capital gains that you would be able to claim on one or the other.
Just make sure you keep all records of expenses such as maintenance to offset against any tax deductions, such as CGT in the future.Many thanks bethp. Very helpful.
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