CGT on Personal Home

Viewing 7 posts - 1 through 7 (of 7 total)

ozpropertyguru
Member
@ozpropertyguru
Join Date: 2013
Post Count: 17
March 4, 2013 - 10:03 am
Hey all,
I'm new to the forum. This question has probably been answered dozens of time but I need to confirm it.
If I purchase a family dwelling. Live in there a bit and then renovate it & sell it how would I be affected by CGT.
Am I totally exempt? Is there a time frame in which I need to live in the house to be exempt.
The ATO website isn't 100% clear so I wanted to ask members experienced in this.
Thanks for your time.
Sam
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
March 4, 2013 - 11:20 am
Your main residence is exempt from CGT.
I'm not sure how you would prove that it's your main residence if your basically flipping it.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
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Mortgage Broker assisting clients Australia wide Email: [email protected]
ozpropertyguru
Member
@ozpropertyguru
Join Date: 2013
Post Count: 17
March 4, 2013 - 12:37 pm
Hey Jamie,
The thing is I don't own anything else. So for the time I'd be living in it & working with people to do it up it would in fact be my primary residence. I think flipping it would be the monetary bonus.
It's good to know that it's totally CGT exempt.
Cheers,
Sam
wilko1
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@wilko1
Join Date: 2010
Post Count: 510
March 4, 2013 - 1:34 pm
It depends if you then repeat the process again and again In business like fashion.
1st time your ok with the CGT free
2nd time you would prob be ok as well.
but if you've lived in 3 houses and renovated, sold and claimed the PPOR CGT exemption in 3 house in a year they would prob say you are in the business of renovating.
Jamie Moore
Participant
@jamie-m
Join Date: 2010
Post Count: 5,069
March 4, 2013 - 9:26 pm
Hi Sam
Have a chat with your accountant before making any decisions.
I agree with Wilko – the first time may be ok but if you start doing it a few times, it begins to look more commercial.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone Me
Mortgage Broker assisting clients Australia wide Email: [email protected]
ozpropertyguru
Member
@ozpropertyguru
Join Date: 2013
Post Count: 17
March 4, 2013 - 11:25 pm
Cheers for the feedback.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
March 4, 2013 - 11:42 pm
Main residences are generally exempt. But not always. eg>
If you run a buinsess from the home,
If the land area is over 2 hectares
If you are in the business of buying and renovating.
If it is a normal size block with one house and no renters or business conducted at home then it would probably be exempt and you would probably be able to argue that you are not doing this as a business.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au