CGT on PPOR changed to IP

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

Newcastle Knight
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@newcastle-knight
Join Date: 2012
Post Count: 27
October 1, 2012 - 10:35 am
Hi everyone
    If I was to change my PPOR to an IP in say 5 years time would I still have to pay CGT when I sell it? I am definately thinking that would be the case, however is it possible to get my PPOR revalued by a licensed valuer or real estate professional when I change from PPOR to IP and only pay the difference when time to sell?
    Cheers
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
October 1, 2012 - 11:37 pm
Depending on your circumstances the property could be totally CGT free if sold within 6 years of it being rented.
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
Newcastle Knight
Member
@newcastle-knight
Join Date: 2012
Post Count: 27
October 2, 2012 - 9:45 am
Thanks Terry
    Is that the 6 year rule that I have heard about.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
October 2, 2012 - 9:52 am
yes, section 118-145 ITAA 1997
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
Scott No Mates
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@scott-no-mates
Join Date: 2005
Post Count: 3,856
October 2, 2012 - 10:18 pm
Provided of course that you don’t have another place you are calling your ppor.