I am planing to rent out my current home for a few years and buy another property interstate and live there. What happens if later I decide to sell it will I need to pay CGT or get full exemption? Or CGT will only apply from the time it will be rent out?
I purchased it in 2006 and was always main residence.
I read on ATO site:
The house in question must be your main dwelling to be exempt from CGT. In other words, you cannot own another property and live in that for a few years, then move back and forth between that and your main residence and avoid CGT on both properties.
# Generally, if you bought a house after August 20, 1996, you must have lived in it when you first bought it (as opposed to having rented it out) to be entitled to a full exemption. This comes under the “Home first-used to produce income” rule.
# On the provison the above two points are met, if you rent out your home for less than six years, you are exempt from CGT.
# Assuming the ATO deems you are subject to CGT, if you hold a property for more than 12 months, you are entitled to a 50% CGT discount.
If I understand this correctly..... up to 6 years CGT free only works if I had one property and then it became rental and I lived somewhere else, but not owning&living in anything else.
Thanks in advance.
I purchased it in 2006 and was always main residence.
I read on ATO site:
The house in question must be your main dwelling to be exempt from CGT. In other words, you cannot own another property and live in that for a few years, then move back and forth between that and your main residence and avoid CGT on both properties.
# Generally, if you bought a house after August 20, 1996, you must have lived in it when you first bought it (as opposed to having rented it out) to be entitled to a full exemption. This comes under the “Home first-used to produce income” rule.
# On the provison the above two points are met, if you rent out your home for less than six years, you are exempt from CGT.
# Assuming the ATO deems you are subject to CGT, if you hold a property for more than 12 months, you are entitled to a 50% CGT discount.
If I understand this correctly..... up to 6 years CGT free only works if I had one property and then it became rental and I lived somewhere else, but not owning&living in anything else.
Thanks in advance.