HI crew,
So I am thinking of moving out of my PPOR and renting a house for maybe a year
whilst renting out the house. (just works out cheaper, my rent is half of what I would be paying on my interest)
I understand that if I wish to sell I will be paying CGT while it is then an investment property.
If I decide to move back in do I need to wait another 12 months before I can sell without paying CGT?The sale will be CGT free under the '6 year rule' if you are renting a place elsewhere. There are a million posts on the forum about this one, just do a quick search for it.
Cheers,
Lukeluke86 wrote:The sale will be CGT free under the '6 year rule' if you are renting a place elsewhere. There are a million posts on the forum about this one, just do a quick search for it.Cheers,
LukeThanks Luke, I guess where I'm scratching my head here is, what is the "6 year rule"? Is it saying that once I have lived in my PPOR for over 12 months than decide to make it an investment property that if I only use it as an investment property for less than 6 years I can still sell it without wacking the CGT?
Reading what I just wrote makes me think this sounds completely off, like I said I am completley green on this '6 year rule'Packer
see s118-145 Income Tax Assessment Act 2007
You can rent your main residence out for up to 6 years and still have it exempt from CGT in some circumstances.
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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