CGT main residence and FHOG requirment

Viewing 5 posts - 1 through 5 (of 5 total)

davidF
Member
@davidf
Join Date: 2012
Post Count: 3
July 19, 2012 - 6:07 am
Not sure anyone had this situation.
My wife owns a unit before I knew her. I bought a TH (first home buyer) when we were dating. I moved in the TH right after settlement. Then she moved in my TH 4 months after me and we got married.
A year later now, we want to sale her unit. Is this true that even I have to choose her unit to be my main residence in order for her to get full CGT exemption?
I am happy to give up full CGT exemption on my TH, but can I point her unit as main residence after she moved in my TH? Since FHOG requires live at least 6 months.
Just wondering FHOG means I just need to physically live there, which I did do, and can point my main residence to somewhere?
Thanks in advance.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 19, 2012 - 1:14 pm
FHOG and CGT have different requirements.
The requirement for a FHOG is that you have to live there for 6 months which you appear to have done.
The requirement for the CGT main residence exemption is that the property has to be your main residence or was your main residence and you are temporarily absent.
Couples can only have one main residence between them so when you got married or become defacto this is when you can only have 1 before that both could be qualified.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
davidF
Member
@davidf
Join Date: 2012
Post Count: 3
July 20, 2012 - 1:04 am
Terryw wrote:
FHOG and CGT have different requirements.
The requirement for a FHOG is that you have to live there for 6 months which you appear to have done.
The requirement for the CGT main residence exemption is that the property has to be your main residence or was your main residence and you are temporarily absent.
Couples can only have one main residence between them so when you got married or become defacto this is when you can only have 1 before that both could be qualified.
Thanks for your reply, Terry
So for example, I bought the TH at 1st Jan, and can point my main residence to my wife's unit at 30th April? it stil meet the FHOG 6 months requirement?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 20, 2012 - 1:06 am
Where did you live as your main residence?
If you moved in 1 jan and out 30 april then you haven't lived there 6 months so wouldn't qualify for the FHOG.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
davidF
Member
@davidf
Join Date: 2012
Post Count: 3
July 23, 2012 - 1:25 am
Terryw wrote:
Where did you live as your main residence?
If you moved in 1 jan and out 30 april then you haven't lived there 6 months so wouldn't qualify for the FHOG.
I did not move out 30 april, but I would like to select my wife's unit as main residence when she moved in to my TH. So we both select her unit as our main residence for CGT reason.
Thanks