FHOG and Capital Gains Tax

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Broons
Participant
@broons
Join Date: 2003
Post Count: 3
October 15, 2003 - 3:38 am
Hi all, where a person has just purchased their first home with the assitance of the FHOG will they be exposed to “Capital Gains Tax” when they sell it – if it is sold within a few years after ?….AND
If so, how many years are given in this situation to be exempt from Capital Gains Tax ?…someone told me it was 6 years, then after that of your first home’s sale is subject to CGT. Is this correct ?
regards
BR
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
October 15, 2003 - 4:35 am
If it has always been their home then no CGT.
If their home then they move out and rent it for up to 6 years then no CGT.
Unless they buy a new home. You can only have the exemption for one home – they may overlap for some months if you buy one whilst still selling the first one though.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Chris-Syd
Participant
@chris-syd
Join Date: 2003
Post Count: 75
October 15, 2003 - 4:36 am
The only way to get the FHOG is to make the property your PPOR (Principal Place Of Residence). There is no CGT on you PPOR.
Check out this from ATO about CGT and “your home”
http://www.ato.gov.au/individuals/content.asp?doc=/content/31570.htm&page=11
Chris
All post are IMHO.
Broons
Participant
@broons
Join Date: 2003
Post Count: 3
October 16, 2003 - 4:45 am
Thanks Simon & Chris for your help and ATO link.
Cheers,
BR