Hi,
I need some advice on how I can sell both my properties without triggering a GST event, I believe this maybe possible.
Here's the background.
Property 1 was bought (as PPR) in 2004, which I moved straight into.
Property 2 was bought (as PPR) in 2010, which I moved straight into.
I lived in property 2 throughout 2011 and move back into property 1 in Feb 2012.
I am currently living in Property 1 and would like to sell it now.
Once Property 1 is sold (say in the next 3months).
I will move back into Property 2.
Is it possible to then live for a period (6months? 12months?) in Property 2 and sell it without triggering a CGT event?
I have looked at the ATO website, however I can't find a clear answer.
Both properties are located in Victoria, both under mortgage (myself has the sole owner).
Please advise if any further information is required.
thanks in advance
Scotts
Hi Scotts,
I would be contacting your accountant and get some advice… Thats the best and easy way.
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
thanks for the tip, i did end up seeing an accountant(s) in early last year, spent over an 1hour talk through my plans as I also have a small dev going to.
they advised they would get back to me and with verified advice (obviously what i was doing was outside of their comfort zone) on how the structure/restructure, but never did.
basically wasted half my day to travel to see them, time off work etc
the accountant was recommend on this board, so i'm a bit off the idea of seeing random accountants.
so i hoping someone here could give me some good advise, which i can then just get verified.
For general situations you cannot avoid CGT on both – perhaps you could if no growth!
You need tax advice on how to minimise any 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
Terryw, is there not some rule about moving back into a property and making it your PPR again before selling?
Hi Scotts,
If the property was receiving an income at some time then CGT may be applicable – How much for what portion best to talk to an expert.
When the property was "treated" as an IP did you ever lodge a tax return with your properties?
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
yes during tax year of 2011-2012 i did lodge a tax return on property 2. that is the only claim as an IP made (on either property)
If the ATO site is not clear and a tax accountant can't give you a definitive answer they normally ask the ATO for a decision. That covers everyone's butt
scotts wrote:Terryw, is there not some rule about moving back into a property and making it your PPR again before selling?Yes, http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.140.html
but only if sell one within 6 months of buying the other.
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
Generally, you get one main residence exemption, except perhaps for a 6 month overlap as Terry said.
Take your details to another accountant to get an informed opinion.
Cheers,
Rob
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