CGT Exemption - Duration & Marriage

Hi all,

Just wondering if anyone can shed some light on this situation.

My partner has a PPOR which she lived in for 1 year and is now in it's second year of being rented out (3rd yr in total). If she moves back within the 6 year CGT exemption, is there a minimum amount of time she has to live in property before renting it out again and still be exempt from CGT if she sells the property before the second 6 year cycle concludes?

I also have a PPOR where we are both living in and in the event that we get married, do either PPOR's lose the CGT exemptions?

Advice or direction in this area would be greatly appreciated.
Thanks.

CIS said:

My partner has a PPOR which she lived in for 1 year and is now in it's second year of being rented out (3rd yr in total). If she moves back within the 6 year CGT exemption, is there a minimum amount of time she has to live in property before renting it out again and still be exempt from CGT if she sells the property before the second 6 year cycle concludes?

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No, no minimum time.

CIS said:

I also have a PPOR where we are both living in and in the event that we get married, do either PPOR's lose the CGT exemptions?

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Yes, you can only nominate 1 property as a PPOR. There is a 6 month overlap rule that allows you to nominate a 2nd PPOR, which basically allows you 6 months to sell one PPOR and still not pay CGT on it.

Propertunity said:

No, no minimum time.

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While I agree with Propertunity that that there's no set minimum time frame, if one was audited one would need to display proof that the moving in had occurred. eg, some utility bills in the correct name at that address. Moving in for 1 day probably won't cut it!

And don't forget married and defacto are treated the same these days. I have heard you can only have one main residence between a couple - but am not sure on the legislative basis of this.

Thanks to everyone for their advice and some very good points to take into consideration.

The magic number that I've heard when talking about the length of time you have to live in the PPOR is 3 months.

syba said:

The magic number that I've heard when talking about the length of time you have to live in the PPOR is 3 months.

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Rather than putting it down to magic can you let us know a reference for the figure of 3 months?

I believe that there is no set length of time to establish a home as a residence for CGT purposes.

There is a lot of misinformation out there. Many folks believed all sorts of things about the FHOG and I saw a lot of folks disadvantaged by the advice that industry professionals gave out.

Cheers,

Simon said:

Rather than putting it down to magic can you let us know a reference for the figure of 3 months?

I believe that there is no set length of time to establish a home as a residence for CGT purposes.

There is a lot of misinformation out there. Many folks believed all sorts of things about the FHOG and I saw a lot of folks disadvantaged by the advice that industry professionals gave out.

Cheers,

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If you build it and then live in it, its 3 months to make it your PPOR. If you buy it, there is no set limit but as I have mentioned before, its a question of fact not of time.