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As a layman, I would think that the previous PPOR REMAINED your PPOR until you purchased this new one (six months ago). As such, the CGT payable on the old PPOR could be significantly reduced accordingly. But then, I am NOT an Accountant. But, hey, check with yours - you may get a pleasant surprise,We have bought another PPOR over 6 months ago and are contemplating selling our previous PPOR.
Thanks for that. Yes, I have only been renting myself.
And it doesn't matter that I claimed depreciation on my PPOR while renting it out?
Hi James or julia,Hiya,
Provided you've been renting yourself for all of that time, and don't intend to claim the main residence exemption elsewhere at all (as you've indicated)... then yes, you should be able to sell it CGT-free without having to move back in first.
Cheers
James.
Hi there,
i am in a different position .
We bought our PPOR in 1998 for $92000.
Lived in the property to 2003 and then we have had it rented since.
Just before moved out in 2003 it was valued at $230000
Present value 2007 is $280000
We have bought another PPOR over 6 months ago and are contemplating selling our previous PPOR.
Would CGT be only payable on the time it was rented from 03 to 07.
Would it be only payable in the difference between $230000 and $280000.?
thanks.
Hi James or julia,
Here is an interesting scenario which I am very interested to see your response.
Scenario 1
An Australian citizen is a a permanent resident living overseas.
The person returns to Oz, to live in the new PPR for 1 week then returns overseas.
The property is then rented for the next 5 years. The property is then sold as a PPR.
No Capital Gains tax would be paid.
scenario 2
Same as above , but the intention is to build an IP.
At some point the intention changes and the property will be an IP.
Is it ok to deduct particular expenses with holding /purchasing land/construction etc up until the persons intention changes?
Hi redsquash,
My name doesn't start with J but I'm in love with tax just as much so I thought I would help with your question.
In scenario 1, the week that you lived in the residence would not be enough to claim it as your PPOR. The ATO doesn't require a minimum time to be living in the dwelling but it does want a real intention in occupying the dwelling rather than occupying for the intention of a tax break.
Can you elaborate on scenario 2 please as it seems contradictory?