Hi can someone please clarify the following. If I buy a property off the plan which takes 12months to build how long do I need to live in the property to avoid CGT? From what I can find on the ato website it states that the 12month holding period as my primary residence starts when I sign the contract of sale. Does this mean if I intend to use the property as my principal place of residence after the 12 month construction time i can Sell the property and avoid CGT?
Thanks in advanced.
You may be confusing the 50% CGT reduction which is available for assets held longer than 12 months.
For a main residence there is no minimum period in the legislation in which you must live to avoid CGT. But the main residence exemption is not available for vacant land.
But if you are building and move in as soon as practical after completion and live there for at least 3 months then you may be able to claim the main residence CGT exemption
s118-150 ITAA97
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.150.htmlTerryw | 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
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