Hi folks
I moved into my investment property recently.
We had rented it out for 16 months, before making it our PPOR
On moving in we had a valuation done on the property, to reset the cost base for any future capital gains.
I have just been reading some advice on certain forums that gives conflicting advice to the above, stating it will be apportioned as time rented, against time as ppor.
Could anyone please give a definitive answer to the above.
The valuation came in the same as the purchase price, however we had intended to throw $80 k at a renovation, and maybe sell it on.
So the above is critical to our plans.
Look forward to a response, thanks.
Hi Peo
I'm not an accountant so seek expert advice. My thoughts are that CGT would apply for the duration it was an IP – if it didn't increase in value, then there's no gains – so I'd assume no tax should be applicable. However – best to seek expert advice.
cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
s 118-192 ITAA 1997 from memory
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
Thanks guys.
Terry I had a look at the section you pointed me to, covered lots of areas simaler to mine, but more from an angle of making a PPOR an IP.
I will keep on digging.
If anyone out there does have a dedinative answer or has been through this scenario I would live to hear the result.
Cheers
peo wrote:Thanks guys.Terry I had a look at the section you pointed me to, covered lots of areas simaler to mine, but more from an angle of making a PPOR an IP.
I will keep on digging.
If anyone out there does have a dedinative answer or has been through this scenario I would live to hear the result.
Cheers
In that case it might be s118-190
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 Peo,
Likewise not an accountant but from memory if you are going from an IP to PPOR, after eventually selling CGT is based on the proportion of time it was rented to the time it was a PPOR.
Therefore a valuation at the time of moving in for the PPOR phase is unnecessary and wont be used.
Obviously check with your accountant.
Cheers
Tom
You must be logged in to reply to this topic. If you don't have an account, you can register here.
