6 yrs CG Tax exempt?

From: Adrian See


Hello readers

What enables someone to be CG tax exempt for 6 years on a property? What I have heard is that if you move into a place as PPOR then move out you will be tax exempt for a period up to 6 years. Then you can move back in for a while and be exempt for another 6 years. Can anybody elaborate on this?

Regards

Adrian See
 
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Reply: 1
From: Rixter ®


You can be Tax Exempt for ever or as long as you like by staying in it permanently.
Happy Investing,
Rixter :)
 
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Reply: 1.1
From: Gail H


As I understand it, a property can still be regarded as a principal place of residence, as long as the owner has not moved out for more than 6 years. And yes, the 6 years can start running again if you move back in. But it can depend on other factors too - the issue is whether you intended it to be your principal place of residence when you bought it. The tax office can look at things such as whether your name was put on the electoral role, etc.

I'm pretty sure you can find some info re this on the tax dept's website.

Gail
 
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Reply: 1.1.1
From: Dale Gatherum-Goss


HI

Yes, this is right. It is so the pollies can accept overseas placements as a diplomat and not have to pay tax on someone else using their home.

Cheers

Dale
 
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Reply: 1.1.1.1
From: Adrian See


So can I live in my new place for 6 months then rent it out and sell it in 5 years with no CG tax? (still claiming deductions)

Regards


Adrian See
 
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Sim

Administrator
Reply: 1.1.1.1.1
From: Sim' Hampel


Note that during those 6 years, you cannot have another property for which you will claim the PPOR CGT exemption.

ie. there can be only one PPOR.

 
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