Good evening,
My situation is as follows – I purchased a house in Perth in 2009 for 429k, which was my families principal place of residence.
The house was subsequently valued at 495k in July 2013, when it was re-valued, subject to it becoming our investment rental property.
Following the breakdown of my marriage, I moved back into the rental in September 2015, so it effectively became my PPR.
The house was already on the market at this time and was subsequently sold for 470k in February 2016.
I’m assuming the relevant period for capital gains tax purposes would be between July 2013 when it became a rental property and when it was sold in Feb.2016……or, would the fact that I moved back into the property in September 2015 negate any capital gains tax anyway anyway?
Also, as the property declined in value during the period it was a rental, would this be something we could claim on subsequent tax returns, or like I previously mentioned……would this be negated due to the fact I moved back into the property before it was sold.
Thanks in advance for any advice forthcoming
Steve
the 6 year absence rule could apply so not taable but as you sold for less than the valuation at the date it first become income producing you might be able to claim a capital loss.
speak to your accountant
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 Terry, I’m unaware of the 6 absence rule?
My ex is having issues with the ATO regarding her last tax return, which seems to revolve around the purchase price of the rental.
They seem to be implying she may be liable for Capital Gains Tax, which as you have noted….she is not
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