All Topics / Legal & Accounting / Owning Property But Not Living in It

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  • Profile photo of JeanoJeano
    Participant
    @jeano
    Join Date: 2011
    Post Count: 24

    Hi am throwing some ideas around

    If you bought a property and didn't live in it and reno it for sale and didn't own another but was renting elsewhere, would you have to pay cap gains as technically  it is your only property

    Just thinking

    Cheers

    Profile photo of Nigel KibelNigel Kibel
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    @nigel-kibel
    Join Date: 2005
    Post Count: 1,425

    This is a tricky one. Because you do not own anything else you should be ok. However the tax department also look at intent. So if you renovate and sell straight away they may deem that you did this as a commercial venture, so it may pay for you to move into it at least for a short period. However will all things like this you should seek professional advice before proceeding ahead from a sound property accountant

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    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Property is subject to CGT. One exemption is for main residences. If you can establish it as a main residence first and then move it and don't rent it it could be exempt indefinitely.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of JeanoJeano
    Participant
    @jeano
    Join Date: 2011
    Post Count: 24

    Thanks for the info

    Chhers

    Profile photo of JeanoJeano
    Participant
    @jeano
    Join Date: 2011
    Post Count: 24

    Thanks or the info

    Profile photo of Dan42Dan42
    Member
    @dan42
    Join Date: 2008
    Post Count: 619

    Further to what Terry said, you need to be able to show it was your main residence for a time. Things like getting the electricity and gas connected, changing your mailing address, changing your drivers licence address would be taken into account by the ATO.

Viewing 6 posts - 1 through 6 (of 6 total)

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