Hi,
I am have been trying to find the answer for my question but now have only become more confused so was hoping for some help.
I am moving interstate for work reasons and am going to rent out my PPOR.
I plan to be away for a couple of years (likley returning after then) and want to continue to treat the home as my PPOR for capital gains purposes. Can I claim depreciation on my home whilst it is rented?
If so, does this mean I have to pay some CGT when I eventually sell?
Any help would be apprecaited.Assuming you lived in the PPOR from the time you bought it you can then move out for up to 6 years and not have to pay CGT (commonly known as the 6 year rule).
While you are renting it out you can claim depreciation, interest, rates etc.
This is on the proviso that you do not purchase another PPOR.
So if you move back in or sell within 6 years you pay no CGT.http://www.ato.gov.au/corporate/content.aspx?doc=/content/86191.htm
Here is a link straight off the ATO website it basically says what catalyst said however I like to source anything tax related off the ATO website as it gets updated regularly and it has examples as well.
Or go straight to the legislation:
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html
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
while you are interstate, i suppose you are planning to rent there, rather than purcahse another PPOR.. your changing circumstances can affect how your previous PPOR will be treated
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