I purchased my ppor which was leased for 18 months before we moved in. We have lived here for 8 years and are thinking of selling. Is there a cut off time for CG?
Ollie
Email MeHi Ollie
Your CG = Market price of your PPOR when you moved in – Purchase price.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auSorry Andrew, many people think you value the
property when you move into it after it has been an IP. however, under Section 118-185, the capital gain that is assessable is your capital gain multiplied by the number of days it wasn’t your main residence divided by the number of days that you own itCheers, lucky I have kept good records plus living in it for 8 years will reduce the CG. Will be searching for a good property accountant today to help reduce my CG.
Ollie
Email MeHi CRJ
That’s what I thought initially but this example on the ATO website says otherwise.
Andrew
superAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auHi CRJ
That’s what I thought initially but this example on the ATO website says otherwise.
Andrew
Inappropriate quote
s.118-192 market value cost base deeming only applies for a dwelling that would have been a 100% exempt main residence prior to first using it to earn assessable income.
The original post indicated that this dwelling was initially an IP
I purchased my ppor which was leased for 18 months before we moved in. We have lived here for 8 years and are thinking of selling. Is there a cut off time for CG?
9.5 years of ownership, approx 20% rented so approx 20% subject to CGT.
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
As it was rented out first then the CGT is calculated proportionally to the time rented out.
If it was lived in first then the calculation would be different.
That’s just the way the ATO laws are.
Cheers
Tom
Yes sounds right, off to the accountant on Monday to have it all sorted. My next big question is since moving in we have spent 120k on renovations so the house price has gone up is that included in the CG? I have kept all invoices just incase.
Ollie
Email MeYou may be able to use these expenses to reduce the cost base and thereby CGT>
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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
