We are currently considering moving out of our PPOR and renting elsewhere whilst we put PPOR on the market. Renting out PPOR to tenants while it is on the market.
We are planning on using the sale funds to build a new home. So either way we will be moving out of PPOR after sale to rent whilst building.
My question is, can we still claim the CGT exemption on the property if we move out and rent it out? I have heard of the 6 year rule but not sure if this somehow applies to our situation?
Appreciate your comments.
Yes, the 6 year rule applies in this situation. Basically, you can only have one property that qualifies for CGT exemption at a time. As you will be renting, not buying another property, you would qualify for CGT exemption.
Great! thanks.
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