- miikeParticipant@miikeJoin Date: 2008Post Count: 111
I have a PPOR in which I am trying to decide if I should move out or remain living in.
– Purchased PPOR (2008)
– Renovated the PPOR (25k)
– Lived in PPOR for 3 years with a friend charging him rent.
– Have around 160k equity (in which only 45k of equity is accessible for an investment loan)
Next 12 months goals:
– Purchase a new investment property.
– Turn PPOR into IP and rent out.
– Move out and rent a property.
– Aim to purchase a 2nd IP.
– Remain living in PPOR.
– Aim to purchase an IP.
Which option would be better in my situation in terms of tax.
If I decide to sell in the future my current PPOR as a PPOR I will have no CGT. However, if I turn the PPOR into an IP, CGT will be liable, but I will be able to positive gear (after tax deductions).
Any recommendations on what I should do…
Really Appreciate the help.
MiikemiikeParticipant@miikeJoin Date: 2008Post Count: 111
Think I just answered my own question.
(1) If a * dwelling that was your main residence ceases to be your main residence, you may choose to continue to treat it as your main residence.
(2) If you use the part of the * dwelling that was your main residence for the * purpose of producing assessable income, the maximum period that you can treat it as your main residence under this section while you use it for that purpose is 6 years. You are entitled to another maximum period of 6 years each time the dwelling again becomes and ceases to be your main residence.
Thus my decision will now come down to weather I benefit financially better off with, option A or option B.