I currently own two properties in NSW. The first of which I lived in for 2 years, it has since been rented for the past 13 months. I recently bought a new property and plan to live in it for the foreseeable future. Can I claim my first property as my primary residence to avoid paying Capital Gains tax if I sell within 6 years of moving out even though I am living in my new (second) property? thanks
Assuming you nominated your first property as your PPOR you can use the 6 year rule and not pay CGT (assuming you do not claim the other as your PPOR). You can only claim one PPOR at a time. But you will have to pay CGT on the second property even though you are living in it. You also cannot claim rates etc on the second property while you are living in it.
So assuming I claim my first property as PPOR and then sell within 6 years I will avoid paying CGT. Could I then claim my new property as PPOR after the first one is sold and avoid paying CGT on that as well?
So assuming I claim my first property as PPOR and then sell within 6 years I will avoid paying CGT. Could I then claim my new property as PPOR after the first one is sold and avoid paying CGT on that as well?
Not for any overlapping time.
but if you sell the first within 6 months of buying the second you may be able to claim the exemption on both.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.
