I bought a property in 1995 and lived in it for approx 7 years, then I moved out and rented for approx 5 years. Then I stopped renting it and my son moved in for three years. In the meantime I had moved into another property with my partner and the title deeds were put into joint names and this property then became my PPoR. In March this year we demolished this property so that we could put a new dwelling on the land as it's prime real estate area. My question is: Can we move back to my old house and live there while our house is being built (which will take about 6 months more). While we are living there can I sell this house and claim the CGT exemption or do I have to stay there 12 months. If I sell the house, claim the cgt exemption and then move back to the new house when it is built can I still claim the new house as my PPoR and claim the cgt exemption again when I sell it.
If you have been absent less than 6 years you could possibly claim the first house as your main residence and sell it CGT free.
But the new house will be subject to CGT.
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
No the tenants were there for approx 5 years and then my son lived there for 3 years and I have not lived there for at least 8 years. On the other hand the new house is worth far more so the gst saving would probably be better on the new build.
Thanks for your help.6 years is the limit, but you may be able to claim a partial exemption at least. Best to save as much as you can. Check with your accountant.
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
thanks Terryw we will check it out.
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