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learning curve2 replied to the topic CGT exempt rule - what happens if you move back in 2 months after the 6 years is up? in the forum Help Needed!

Sun, 15 Jul 2012 09:35:19 +0000

hi allwhat about any capital gains in the first 6mths when sheranj lived in the property? i read….Normally when a property is first used as a residence and then is rented, capital gains tax is payable if the eventual selling price exceeds its market value when it ceased being a…[Read more]

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum hi allso if i was to move in

Sat, 14 Jul 2012 21:56:06 +0000

hi allso if i was to move in and live in it for a month over xmas/new year (while catching up with family), do some things that need to be done ie: garden cleanup, some painting etc., get the bills in my name, change address on mail it would be enough? it would be on annual leave from my work.

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Hi Jenny11 that is what i

Fri, 13 Jul 2012 22:18:51 +0000

Hi Jenny11that is what i was querying. i was just asking the question of Blackhotel whose partner did this and i was just asking if she was still working at the time…it seemed to be a little fruitless if she wasthanks

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 13:15:32 +0000

thanks again, terry. i will of course investigate further but you have given me a great base to build upon

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 13:11:32 +0000

oh i get it….. so, i can move in to Property B for a few months (to gain the CGT exemption) and then out again returning it to be an investment and the interest would be deductible again, but not against Property A but against Property B.

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 12:48:22 +0000

hi but previously you said that….So assuming this is an interest only loan only 73% of the interest will be deductible once you move into property B.i am confused

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 12:21:13 +0000

thanks for all your advice, Terry. you have been a great help and i have a lot to think about. the only reason i would move back in is to gain the exemption, not a lifestyle choice. also the info on the IO is very interesting.and sorry for asking again (i don't fully understand), but from what you say below…..'If property B was rented then…[Read more]

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 10:24:07 +0000

thanks terryso it is best to keep Property B as a rental property then? Another idea is if i moved in for a few months to gain the CGT exemption then out again, does the interest on Property A become deductible again? should i pay off the loan?

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 10:13:12 +0000

thanks so much for explaining that terryso does this apply only for the year it happened? i redrew the money in january 2012 and both properties were rented. i don't intend to move in till january 2013 so that is a new financial year. will it be less 27% for the 7mths of this financial year?

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 09:45:00 +0000

I now have $94,000 left to pay (due to the $58,000) and have $80,000 in the offset which by October will reach the amount so I can pay it off completely. is that a wise move now?

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 09:39:49 +0000

hi terryi withdrew $58,000 from the loan taking it from $150,000 up to $208,000 and placed that into the redraw of the house that is still under the 6yr rule hence my idea of moving back in to keep that. i eventually intend to rent it out again.

learning curve2 replied to the topic Withdraw money from one loan to pay off another in the forum Help Needed!

Fri, 13 Jul 2012 09:19:12 +0000

hi terrycan you give me an idea on what kind of issues?

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum hi allyes i lived in it for

Wed, 11 Jul 2012 22:59:46 +0000

hi allyes i lived in it for 11mths first (when i bought it in 2006, moved out early Jan 2007) before having tenants in there (fingers crossed) till January 2013 which equals 6 years. so the best idea is to move in straight away (ie scrap the idea of the 2 mths i plan to leave it vacant) so then it will definitely reset the 6 year clock and there…[Read more]

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Wed, 11 Jul 2012 21:13:40 +0000

hi blackhotelthis is getting closer to want i need to understand. i intend to move back in for a 3 to 6mth period or so (to restart the 6 years)…just not intending to do it straight away when the tenants leave in January. Will do it say, 2 mths after that. So is leaving it vacanct enough (as per the website info) or is Dan right when saying….…[Read more]

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Wed, 11 Jul 2012 19:02:55 +0000

[/quote] Sorry to burst the bubble but that's not right. You can only leave it indefintely and still call it your PPOR, as long as it never earnt income.If it was rented out, you must move back in within six years for the property to remain CGT free. You will need to move back in after the tenants move out, to keep the property CGT free.…[Read more]

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Wed, 11 Jul 2012 10:06:05 +0000

hi me again and sorry to be so annoying but these are the sites i saw the vacant property info on (under Full Exemptions)http://www.quinns.com.au/blog/2010/08/11/how-to-avoid-capital-gains-tax-while-renting-out-your-house/ http://finance.ninemsn.com.au/pfproperty/investing/8123489/rent-out-your-house-and-avoid-capital-gains-tax They say….'This…[Read more]

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Tue, 10 Jul 2012 05:17:10 +0000

oh well. it was worth a shot. i have read all different stories, so the next plan is….say i move back in say 6mths after the 6 years are up. does that mean i still only have to pay CGT on the increase in value over that 6mths? is it then wise to get a valuation done on the property just before the 6 years are up and then another when i move back in?

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Fri, 06 Jul 2012 13:50:12 +0000

Thanks TerryI was just after clarification on the CGT aspect. Great news to hear that I can leave the property vacant and not have to move back in myself after the current tenants leave and still bequalify for the exemption when I eventually sell it.Thanks again for the advice

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Thu, 05 Jul 2012 23:38:02 +0000

Hi DanDo you mean that I wouldn't be eligible if I just left it vacant for 2 mths or so after the tenants move out in early January (ie not earn any income on it) and then get new tenants or move in myself after that time?I read that leaving it vacant would be sufficient enough. It is still a little unclear to meThanks

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Thu, 05 Jul 2012 01:34:29 +0000

Thanks TerryI am just concerned about being eligible for the CGT exemption when I come to sell it later and was just enquiring about the minimum length of time it could be left untenanted. The interest doesn't apply as the house will be paid off by then….no more mortgage!!!

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Thu, 05 Jul 2012 01:20:06 +0000

To leave it untenanted for less than the 3mths. For example, tenants out by early January, leave it vacant for say a month and then start to re-advertise for new tenants, so all up it is left vacant for say 6 weeks (saying that it would take 2 weeks to find new tenants). Would that be seen as being a sufficient amount of time to the ATO?

learning curve2 replied to the topic 6 year rule and CGT - vacant property enough? in the forum Help Needed!

Thu, 05 Jul 2012 01:12:53 +0000

thanks terryso you are saying it could even be less than 3mths? i was just going on what would be seen as being feasible in the eyes of the tax office. less is always better!thanks!

learning curve2 replied to the topic TOWNSVILLE- Investing in new house and land package in the forum this just in the local paper

Wed, 29 Feb 2012 02:08:58 +0000

this just in the local paper today….http://www.townsvillebulletin.com.au/article/2012/02/29/309721_news.htmland a bit more about the DHA land purchase at Rasmussenhttp://www.dha.gov.au/about/news/townsville-land.html

learning curve2 replied to the topic TOWNSVILLE- Investing in new house and land package in the forum Help Needed!

Wed, 29 Feb 2012 02:00:07 +0000

Hiya allI grew up in Townsville and moved away over 20 years ago but go back every few months to see family. I bought my 2 investment properties there (contemplating a 3rd) and although, looking back, I had no real clue as to what I was doing, I knew it would be a winner as all you say about the stable, multi pronged Townsville economy is true.…[Read more]

learning curve2 replied to the topic what tax implications taking out of one IPs redraw to place into other IPs offset? in the forum Help Needed!

Wed, 08 Feb 2012 08:14:20 +0000

thanks terryi appreciate you explaining it all

learning curve2 replied to the topic what tax implications taking out of one IPs redraw to place into other IPs offset? in the forum Help Needed!

Wed, 08 Feb 2012 02:04:35 +0000

thanks terry,do you mean if i ever live in IP no.2 (the one i'm taking the $54,000 out of)?

learning curve2 replied to the topic what tax implications taking out of one IPs redraw to place into other IPs offset? in the forum Help Needed!

Wed, 08 Feb 2012 01:54:27 +0000

thanks for that terryi had a thought…what if i take it out of the redraw at IP no. 2 and place it into IP no. 1 redraw instead of in the offset of IP no. 1? i don't want to touch it to live off or personal expenses, and that would show on my bank statements and it is still against an IP…..what do you think?

learning curve2 replied to the topic what tax implications taking out of one IPs redraw to place into other IPs offset? in the forum Help Needed!

Tue, 07 Feb 2012 21:22:55 +0000

hi terryi want to lessen the payments on my second IP by locking in a good rate but don't want to lose my $54,000. the first IP has obtained the most growth in value and will be the one that I will definitely keep long term and perhaps even move back into at the end of the year. the $54,000 plus savings i have, will make a great deposit on…[Read more]

learning curve2 replied to the topic what tax implications taking out of one IPs redraw to place into other IPs offset? in the forum Help Needed!

Tue, 07 Feb 2012 21:02:37 +0000

thanks for replying, terryso do you see any other way that i could handle it? or am i best to leave the loan as it is with all the 'bells and whistles' ie offset and redraw facility? is the $54,000, where it is at the moment, deductible? or if i was to take it out at a later date and put it up as part of a deposit on another property, IP or PP…[Read more]