Capital gains tax period start date

Hi All

Quick question:

I am in SA.

PPOR
I let my daughter live in the property for about 4 months rent free before renting it out with a property manager etc.

Now its coming up to the six years and need to make a decision whether to mover back or not. RE: CGT considerations if I sold in the near future.

When is the start date of the property being deemed as an investment property is it from When you move out and vacate the property or when you actually start to rent the property and producing income.

Is there a ATO link anyone may have for this answer

Regards
Stargazer
 
Hi All

Quick question:

I am in SA.

PPOR
I let my daughter live in the property for about 4 months rent free before renting it out with a property manager etc.

Now its coming up to the six years and need to make a decision whether to mover back or not. RE: CGT considerations if I sold in the near future.

When is the start date of the property being deemed as an investment property is it from When you move out and vacate the property or when you actually start to rent the property and producing income.

Is there a ATO link anyone may have for this answer

Regards
Stargazer

Doesn't matter where you are or where the property is, income tax is commonweath law.

CGT applies to a property unless an exemption applies. Sounds like you didn't live in it so no 6 year rule exemption. Where did you live during the initial 4 months?

Answer is found at s118-145 ITAA97 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.145.html
 
Hi Terry

Sorry maybe I wasn't clear with my detail. I lived in the house as PPOR for about 8 years and went through a separation and bought out my partner. Late 2008/09

I moved out and rented a place when my daughter moved in for a while. My daughter lived in it for about 4 months. (between march/august 09)

When daughter moved out I rented the place from around Aug/September 2009.
So my question is does the 6 year start when I moved out of the property or when I started renting the property.

Hope that explains it a bit better.

Regards
Stargazer
 
When you first bought did you and your expartner move in as soon as settlement occurred? When exactly did you acquire the property from your expartner? Late 2008/09 does not give any useful information.
 
Hi JRC

Yes we bought and moved in at settlement it was our PPOR, in around 2001.
Finalised and acquired the property from ex-partner in around July 2009. Got a valuation before renting it out.

Regards
SG
 
that was an important bit to leave out!

You have 2 separate interests in the property so just pretend you own 2 separate properties to make things easier.

1st half. You acquired in 2001 and lived in until Mar 2009. after this time did your daughter rent it from you? You could possibly claim the 6 year exemption and this may start from the date of your absence.

2nd half. You acquired in 2009, but did not live there at all??? possibly no exemption on this. Was the daughter dependant on you?
 
Hi Terry

I am not as conversant with these matters so my apologies for not providing the information needed. I'll run through it and hopefully all the information will be here.


  • Early part of 2001 settled on the property in both names with ex partner
  • Mid 2008 decided our marriage was not working
  • Around Sept 2008 ex partner moved out to live elsewhere
  • I continued to live in the property till around March 2009
  • Daughter moved in around this time (March 2009) No Rent was charged for this period
  • I moved out around (March 2009) and rented a property
  • Daughter moved out around (Aug 2009)
  • Property was transferred to my name via solicitor and loans refinanced around this time
  • I rented the property via a property manager and was tenanted around (Sept 2009)
  • Got a valuation done at this time just before rental began
  • I have paid the land tax for this property from when it was rented till present.

Merry Xmas to everyone.

Regards
SG
 
Last edited:
Thanks Terry

So this means I have to move back in and return it to PPOR by March if I want to not pay the CGT when I sell.

So its from the time I left the property and not from when I rented it out.

Thank you this answers my question.

Regards
SG
 
Back
Top