CGT can you pick which property is your PPR if you have lived in both?

Viewing 7 posts - 1 through 7 (of 7 total)

propertyboy
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@propertyboy
Join Date: 2008
Post Count: 232
July 28, 2011 - 4:31 am
Hi guys,
I am from victoria.
I recently bought a house, received FHOG as I lived in it for 1 year. Now I have moved out of this house.
I understand that for 6 years I can rent this property out and it will be CGT exempt.
However, what happens if, within this 6 years I decide to buy another house and move into that house.
I know only one house can be CGT exempt. However, can I pick which one I will apply the CGT exemption to? Or will it only apply to the first one as it was the FIRST house I moved into?
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 28, 2011 - 5:31 am
you can choose s 118-145(1) ITAA 97
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
propertyboy
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@propertyboy
Join Date: 2008
Post Count: 232
July 28, 2011 - 12:50 pm
Doesnt that mean, I could sell one. Then, move into the other one, then that becomes my PPR and then I can also get benefit on that place once I sell?
Or can a person only claim one CGT exemption in their life?
So essentially, if someone has a property of 10 , they could essentially move in to the property when they first buy it and then they can decide which property to sell based on highest gain?
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 28, 2011 - 12:56 pm
Nope.
There is a limit of one main residence at any one time (except for a 6 month exemption when moving). So if you claimed property A from July 2011 to Aug 2012, property B would be be able to be exempt during this time even though you may have been lviing in it all this time.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
propertyboy
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@propertyboy
Join Date: 2008
Post Count: 232
July 28, 2011 - 1:03 pm
Yeh but what if I sold property B 3 years down the track?
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 28, 2011 - 1:18 pm
For the period you claimed A as your main residence property B would lose the CGT exemption.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
propertyboy
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@propertyboy
Join Date: 2008
Post Count: 232
July 29, 2011 - 4:04 am
ohk so then you would have to proportion that period out?