- sniffer wrote:i think what is being asked is how can i reset the 6 year clock??
Move in again as your main residence.
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
hi all
yes i lived in it for 11mths first (when i bought it in 2006, moved out early Jan 2007) before having tenants in there (fingers crossed) till January 2013 which equals 6 years.so the best idea is to move in straight away (ie scrap the idea of the 2 mths i plan to leave it vacant) so then it will definitely reset the 6 year clock and there will be no CGT to pay
OR
in the whole course of owning it for a long time, what is 2mths of CGT to pay as long as the clock then does start again when i move in?
Here's the relevent legislation; s118-145 ITAA 1997
(2) If you use the part of the dwelling that was your main residence for the * purpose of producing assessable income, the maximum period that you can treat it as your main residence under this section while you use it for that purpose is 6 years. You are entitled to another maximum period of 6 years each time the dwelling again becomes and ceases to be your main residence.
That says to me that you must move back in to re-trigger the main residence exemption. Simply ending the tenancy is not enough to continue treating the house as your PPOR, in my opinion.
LC,
You said that you intend to move back in for a 3 to 6mth period or so…. ” and “another point, i understand having all my ID and bills to that address but i will still be working in sydney for that time….won’t that come up as being weird? did your partner still work in QLD in this time period?”
How could you be moving back in for 3 to 6mths and yet still be working in Sydney for that time?
Terry was correct in that you MUST move back in. Accountant could say anything, but in the end it will be your onus to prove.
Hi Jenny11
that is what i was querying. i was just asking the question of Blackhotel whose partner did this and i was just asking if she was still working at the time…it seemed to be a little fruitless if she was
thanks
My partner does not work, she is a housewife, however, it does not matter where you work. people work in all different states and have a PPOR wherever they want all over the world. Remember you are allowed to have 1 x PPOR where you can come and go whenever as you please. As long as you can prove you moved-in, hence electricity/gas bill, all id's to show your new address and then 1 month later change them back.
There is more to it than just changing your IDs too.
There is a case in Vic, relating to the FHOG, where someone did that and didn't actually live there. This was proven as the electricity usage showed virtually no use during the period it was allegedly the main residence.
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
Yes agree, hence why we had a friend go by everday and run the heater etc for a while each day.
Uhm… Sounds like someone tried to beat the tax man here. But LC, just moved in with good intention. I’d rather sleep soundly than having my conscience or worry stir later on.
hi all
so if i was to move in and live in it for a month over xmas/new year (while catching up with family), do some things that need to be done ie: garden cleanup, some painting etc., get the bills in my name, change address on mail it would be enough? it would be on annual leave from my work.There is a tax ruling on what constitutes a principal residence. You should look up that on the ATO legal database and go from there.
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
TD51
Capital Gains: What factors are taken into account in determining whether or not a dwelling is a taxpayer's sole or principal residence?
http://law.ato.gov.au/atolaw/view.htm?locid=cgd/td51/nat/atoThis document has now been withdrawn.
But you can still view it here
http://law.ato.gov.au/atolaw/view.htm?docid=CGD/TD51/NAT/ATO/00001&PiT=19920326000001you will gets some idea
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
learning curve2 wrote:hi all
so if i was to move in and live in it for a month over xmas/new year (while catching up with family), do some things that need to be done ie: garden cleanup, some painting etc., get the bills in my name, change address on mail it would be enough? it would be on annual leave from my work.LC, Note point vii). in the ato link from Terry yesterday. That was why I said earlier 'moved in with good 'intention' '. Thus, you can't just move in for 1 month on your annual leave with the intention of moving back to interstate to work and still claim this house here as your principal home.
LC, Good intention is what my partner had when she decided to move back into her home in Melb, but 4 weeks later she did'nt like living in Melb and the weather sux's so with all good intentions she decided to move back to QLD. It's simply a LOOP HOLE that our accountant advised that we CAN do as long as we could prove she moved-in. I cannot see the ATO telling her that her good intention was not………………………there's nothing wrong with changing your mind about where you want to live!
Even if you want to move-in while on your annual leave, nothing in the act says YOU MUST live there for a certain amount of time. You could just simply at the end of your leave decide to move out and go back to work in another State.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
