Hi all,
I purchased a property in November 1996, I rented it out for the first time in February 1997, the property remained rented until July 2000. I move to the property in August 2000 and stayed until i rented in out again in June 2002 and the property is till rented out now.
Do I need to pay CGT if I sell it. or can i treat it as my PPOR for the full period I owned it ?
Thanks in advance
You are going to have to pay CGT as it is not currently your PPOR..
However if its held in your own name you are entitled to a 50% CGT discount, should provide a bit of a buffer….
Pete
…Beware of the dreamtakers…
NewToPI
You don’t say if you actually lived in the property in the period before it was rented out. If you did and you don’t own another property, then I beleive you could claim this as your PPOR and not pay any CGT. (Under the 6 yr exemption rule). Check with an accountant.
Terryw
[email protected]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
Tanks Terry and Willi
I lived in the property for about 2 months straight after i purchased it.
I just purchased another ip in December 2002 and rented it out immediately.
do you think i don’t need to pay CGT on my first property since i can treat as a ppor eventhough i wasn’t living in it for half the period i owned it ?
NewToPI
You could claim it as your PPOR, but the period is limited to 6 years. Since you moved into it again, the 6 years starts again. SO I think you probably could claim it as your PPOR. Check with your accountant.
Terryw
[email protected]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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