在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo
Hi all. I read a few threads here that talk about the 6 year rule - I actually never heard about it until today!
I'm wondering whether if my IP qualifies as a PPR:
2006 - Bought the property as first home buyer. Immediately lived in it for 1 year continuously.
2007 - Rented it out (I moved out)
2010 - Right now, it's still being rented out
My question is, if I sell it now (2010), do I have to pay CGT on it? If so, what is my cost base?
If you have the official ATO ruling URL on it, please send it to me! Thanks so much for your help!
PS This forum is AWESOME! So many smart people here!!!
msapples said: ↑
My question is, if I sell it now (2010), do I have to pay CGT on it?Click to expand...My understanding is that you will not have any CGT liabilty if you were to sell now as long as you have not nominated another property as your PPOR between 2007 and now.
It depends where you have been living for the past four years. Have you bought somewhere else or have you rented / moved back in with parents?
As long as you haven't bought another PPOR and want to claim the new house as your main residence, then you should be able to use the six year rule.
Yes, as above. Also If you move back in next year you can then move out and rent it fort another 6 years without having to pay CGT.
travelbug said: ↑
Yes, as above. Also If you move back in next year you can then move out and rent it fort another 6 years without having to pay CGT.Click to expand...Do the ATO like that? I know its in the rules, but surely they would try and catch you out on the anti avoidance act or something similar?
Thanks guys, you've all been extremely helpful.
I'm very grateful for your speedy replies.
Woohoo! My property qualifies for PPR - I also did some digging, and found this ATO site - may be helpful to others here:
Yea, I don't have any other property... This is the only one I own for now, so I haven't nominated any other property as my PPR.
I read somewhere else on here that it would qualify as long as you lived in it first, then rented it out. If you rented it out, lived in it, then rented it out, the exemption was the fraction of the period while you were living in.
I wonder if you bought a PPOR which was tennanted, lived in it as soon as the current lease was up, then rented out - if it would qualify for the 6 year rule?
uvelocity said: ↑
I wonder if you bought a PPOR which was tennanted, lived in it as soon as the current lease was up, then rented out - if it would qualify for the 6 year rule?Click to expand...No, you have to live in it as a PPOR first up.
Propertunity said: ↑
No, you have to live in it as a PPOR first up.Click to expand...Bummer. Was a bit more than a "what-if"
As usual the rules are messy