Hi all,
Im a bit stuck with the following situation.
If I have a PPOR and an investment property, decide to move into the investment property and then rent out my prior PPOR ……
what would be the CGT implications if after 6 months living there I decide to subdivide, retain the front and sell the back block off?
Know there’s a straight forward answer somewhere I think Im just looking for a complicated answer when there doesn’t have to be one.
I would imagine your answer is the same as to “Subdivision Tax Question” You would have to pay CGT on selling the back block. Your front house as PPR wouldnt attract CGT when you sell. Obviously tax would be payable on earnings from your old PPR (now IP) You can ring the tax dept. and ask all these questions and they are very obliging.
Fern
Hi fernfurn,
Thats basically what I was thinking so think Im on the right path.
Thanks for your post.
Hi PWA,
I would also recommend you download a copy of the ATO’s CGT guide.
It has a number of examples, one of which is the scenario you are currently investigating.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Great..thanks Derek!
Much appreciated.
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