CGT exemption for 2 PPORs between spouses

Hi everyone,

I am hoping that someone can help me with the best strategy for an impending property purchase. I have done some researching on the ATO website and various forums but still have not found clear answer.

The situation is as follows:

We live in Victoria. My fiance owns PPOR and has been residing there for past 3 yrs, obtaining significant capital gains. I own an existing IP that is negative gearing.

We are about to purchase a new residence to live in together and would like to hold and continue to rent out the other 2 properties (inner city) as the rentals are high and we think there are further capital gains. The question remains whether we should purchase the new residence in my name only so that I can elect this as my PPOR. My fiance can then continue to elect his other property as PPOR and obtain the 6-yr CGT exemption rule in we decide to sell down the track. Does anyone know if this is allowable ?

Other options we have considered: hold the property and never sell, or sell now and get full CGT exemption putting the proceeds on the new PPOR. We also considered selling portion/all to me but as we are not married yet this would not be stamp duty exempt.

Appreciate your help and suggestions!

Thank you :)
 
We are about to purchase a new residence to live in together and would like to hold and continue to rent out the other 2 properties (inner city) as the rentals are high and we think there are further capital gains. The question remains whether we should purchase the new residence in my name only so that I can elect this as my PPOR. My fiance can then continue to elect his other property as PPOR and obtain the 6-yr CGT exemption rule in we decide to sell down the track. Does anyone know if this is allowable ?

A couple can only have one PPOR between them so if you and your fiance live in a new PPOR irrespective of the name on the title to the property, then your fiance's current PPOR would lose its CGT exemption from the time of acquiring the new PPOR. You might be able to use the provisions of Section 118-170 to elect your fiance's house as your PPOR. What is best will depend on actual circumstances eg borrowings, likely gains etc
 
Jrc - thanks for the reply.

So it sounds like we can only have one main residence for CGT purposes because we are a couple (whereas if we were single we would be fine). If we decide to make separate nominations, each will only be entitled to a maximum 50% main residence exemption for the period.

In which case will have to think about which options gives us the best outcome given our individual circumstances.
 
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