I purchased two apartments(they’re not too far away from each other) off-the-plan a couple of years ago and would like to ask a quick question about CGT exemption.
The first apartment will settle in a month and the second one will settle next year. Both apartments have appreciated quite a lot in value based on current market value.
If I move into the first apartment right after settlement (and renting out my current place and make it my investment property) and treat it as my main residence, then move into the second apartment when it settles and sell the first apartment at the same time, would i be able to get CGT exemption on the first apartment, even though I have only lived there for a few months? (of course I’ll actually live there, change address on driver’s license, open new utility accounts etc)
Anything in particular I need to pay attention to?
Your help would be much appreciated!
No, because there would be some overlapping of owership period – so only one could be the main residence at any one time.
Thanks Terry but to be honest I’m a bit confused…
These two properties won’t settle at the same time. the 2nd property will settle between 6-9 months after the 1st one settles. Any particular reason for the possibility of ownership period overlapping? Maybe I’m missing something?
Would you be kind enough to elaborate a bit more?
what did you exactly mean? Let’s say I signed the contract 2 years ago…why is that more important than the settlement date? I don’t understand…
I see where you come from now Terry, thanks!
In my case, I didn’t sign the 2 contracts on the same day. Actually I signed the contract for the second off-the-plan property roughly about 1 year after signing for the first property. What implication would that have to my situation?