6 year rule

[dex123]

I'm moving out of my PPOR because I've purchased a new house in the same city as the original PPOR - just in the neighbouring suburb. I'm converting my old PPOR into an IP and renting it out to take advantage of negative gearing. During this time I will be staying the new house, but will not incur any CGT event on the new house as I plan to live in it for say 20 years.
I plan to sell the old PPOR (which will be an IP by then) in about 5 years - can I take advantage of the 6-year rule and claim CGT exemption when I sell my IP although I have purchased a new house?

[sunshine]

The 6 year rule can only be used if there is no other PPOR. I believe there can only be an overlap of 6 months if owning 2 PPORs. If your new property is in a different structure e.g. trust, then you will be effectively renting from the trust and it is an IP. If that is the case you will be able to take advantage of the 6 year rule as long as you don't purchase another PPOR.

Sunshine

Edit: Upon reading the question again, I probably didn't help you much. I believe you can nominate your PPOR, so perhaps yes it can be done. I will let an expert help cause it gets a bit too curly for me.

[redsquash]

I'm moving out of my PPOR because I've purchased a new house in the same city as the original PPOR - just in the neighbouring suburb. I'm converting my old PPOR into an IP and renting it out to take advantage of negative gearing. During this time I will be staying the new house, but will not incur any CGT event on the new house as I plan to live in it for say 20 years.
I plan to sell the old PPOR (which will be an IP by then) in about 5 years - can I take advantage of the 6-year rule and claim CGT exemption when I sell my IP although I have purchased a new house?

Yes.
You can claim the IP as your PPR and be absent for 6years.
move back for awhile then keep doing the same thing every 6 years if you want to.
your second property will be your residence it just wont be your PPR.

if you sell your second house after 20 years then 14/20 would be exempt CGT if you declared it your PPR and after selling the 1st property after 6 years