Building on property within 6yr PPOR to sell - CGT exemption?

[Land]

Hi all,

I bought a place with the FHBG in 2004 and lived in it for 6 months, so I still have the CGT exemption for PPOR if I sell it within 6 years.

The question is, if I build a new house on it and then sell it once it's completed, can I still claim the PPOR CGT exemption? i.e. whatever I sel if for above my initial loan and the construction loan is clear profit (after agent's commission)

Thanks for any responses!

Aaron

 

[BV]

Hi Aaron,

I am thinking that if you demolish the house it's no longer your PPOR so you could be liable for CGT.
When you demolish a property I believe the ATO is considering it like you are disposing it and you start fresh.
Get professional advise on this one.
I would get a valuation before demolition so if you get challenged by the ATO at least you would know what your place was worth on demolition and how much the land was worth.

Cheers