Hi all,
I am looking at buying a property that needs a major renovation. The plan is to buy, live in it while renovating for 6-9 months and in doing so qualify for the FHOG (it is in Melbourne so looking at $16,000 in FHOG).
Given this will be my principle place of residence if i sell the property – will i be exempt from paying any capital gains tax? Do i have to live in this property for a minimum period of time to qualify for this exemption?
My understanding is that for the FHOG i would have to live in the property for 6 months, and it has to be my PPoR. But for capital gains tax exemption it only needs to be my PPoR and there is no 'minimum' time requirement.
Any advice would be much appreciated!
Thanks.
I don't think there is any minimum. You can see the things they take into account in determining whether a property is your main residence in TD51 which you can find on the ATO site.
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
Hi, CGT exemption is applied to your main residence. That is the place you live in… the whole period you have lived in your main residence is CGT free. Even if you dont live in your main residence, you still can have it CGT free by renting it out for up to 6 yrs. ie. if you rent it out for up to 6 yrs and then move back for few months and then rent it out again, your 6 yrs clock starts again…
but you can only have one main residence exempt at any given time.
cheers
You are partially correct but there are other factors used to determine if this is your main residence see ato web site for some of these other factors.
http://www.ato.gov.au/individuals/content.asp?doc=/content/36883.htm
You must be logged in to reply to this topic. If you don't have an account, you can register here.
