Hi All,
I will be renting out my PPOR in 2 months time, and moving overseas for my new career.
Understand that in order for my PPOR to be exempted from CGT, i have to move back at the end of six years, and re-establish it as my home again, for example by connecting electricity in my name and etc.
Question – how long should i stay in there in order to consider myself having "re-establish" as my home again?
Is one month considered good?
Cheers
NitThe way I explain arrangements like this. The ATO are real people, if it looks and sounds like a scheme to reduce tax they will penalise you. You can play hard, but play fair. They will look at if you were in the country, took a job, joined the gym… I think you can see how they can establish what is real and what is not. I will say no to the one month, but there would be also be a few cases where this was actually legitimate. i.e Moved back to country, started a job, bought furniture, divorced husband and moved back out of property…….. sounds like bad luck, but this might be the one off case.
Legislation doesn't specify how long see s 118-145 ITAA 1936.
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
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