I recently sold an IP that I’ve owned since 2004. It was my PPoR for 5 years until 2009, when I moved and rented it out until November last year.
I’m aware I’m eligible for a 50% CGT discount based on having owned it for more than 12 months, but is there any further reduction based on the first 5 years when I lived in the property?
Many thanks in advance!
Hi Streaker the ATO provides informative download on what constitutes a Capital Gain event ( a loss included). From memory you may require to ascertain the value of the house when it ceased to be your PPOR. ie. what was it worth when you started renting it out as the C Gain is calculated back to this point as before that it was your PPOR.
Hi Streaker
the ATO provides informative download on what constitutes a Capital Gain event ( a loss included). From memory you may require to ascertain the value of the house when it ceased to be your PPOR. ie. what was it worth when you started renting it out as the C Gain is calculated back to this point as before that it was your PPOR.but is there any further reduction based on the first 5 years when I lived in the property?
Yes, it could be either
a) cost base reset to the value at date first income producing
or
b) above plus using the 6 year rule and apportioning.
seek tax advice
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
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