Hey everyone,
was wondering if i brought a unit for $140k as PPOR and sold it 2-3 months later due to strata issues, and travel to far from work, if i sold for $190k if capital gains tax would apply? thanks.
Hi Nathan,
As long as your property qualifies the "main residence' test as per ATO, capital gains tax will not apply.Below is an excerpt from ATO website on the concept of "main residence"
The following factors may be relevant in working out whether a dwelling is your main residence:
* the length of time you live there – there is no minimum time a person has to live in a home before it is considered to be their main residence
* whether your family lives there
* whether you have moved your personal belongings into the home
* the address to which your mail is delivered
* your address on the electoral roll
For more information, go to http://www.ato.gov.au/individuals/content.asp?doc=/content/36883.htm
Hope this helps.
* the connection of services (for example, phone, gas or electricity), and
* your intention in occupying the dwelling.propertypower thanks for your reply, great details, i will take aboard, i will be moving in over xmas
<br /
:)” title=”>:)” class=”bbcode_smiley” />much appreciated..
And you can generally only class a property as your main residence once you have lived in it.
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
:)” title=”>:)” class=”bbcode_smiley” />
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