Viewing 5 posts - 1 through 5 (of 5 total)
  • mkbonline
    Participant
    @mkbonline
    Join Date: 2012
    Post Count: 17

    I purchased 2 bed townhouse as my PPOR in Dec 2010 for $320K in Toongabbie NSW. Lived their till Feb 2015 and then moved to overseas with a new job. I came back to Australia in Nov 2016 and was renting out in a different suburb till Dec 2018. I brought new place and move in Dec 2018. Old PPOR (Toongabbie) is rented out since April 2015 (more than 4 years now).Current estimated market price is $570K.

    I want to sell it and invest money in offset account of new PPOR. .I have consulted few tax agents but getting conflicting advise regarding CGT liability.My question – Will I have CGT Liability if I sell old PPOR?

    Cheers,
    Manish

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Not enough info, but possibly not as you have been absent for less than 6 years.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    mkbonline
    Participant
    @mkbonline
    Join Date: 2012
    Post Count: 17

    Thank Terry. My understanding was same i.e. You can still claim the the CGT free period for up to 6 years after moving out. But one tax agent advised me that since i have brought a new place of permanent residence in Dec 2018 – I will need to pay CGT on any growth in original property after I moved into the new place (Dec 18). Is that correct?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,173

    Not correct.
    But is correct if you choose to use the main residence exemption on the new one.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi MKB,
    Terryw had gone into quite some depth on this CGT subject previously – check out my post here:-
    https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/page/2/#post-5006553

    Read on down and follow each link – especially the last two (in the PS area) where Terryw expands on the whole subject and provides a huge chunk of not-well-known info re CGT. Once you have done that, it should clarify a lot of things in your mind – then come back to this post to ask more questions re YOUR situation (in case it is different in some aspects).

    Benny

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic.