Hi everyone. This is my first post but I'm hoping to contribute more in the future.
Anyway I was hoping some tax professionals could help me with my question. Why is the main residence exemption only available if you move out completely?
e.g.
Scenario 1
If I bought a house, established it as my PPOR, and then decided to rent out one of the rooms while still living in there. I'd be up for CGT when I sell the house as I used it to produce income, however it never ceased to be my PPOR.
vs
Scenario 2
If I bought a house, established it as my PPOR, moved out and rented a room in a house across the road, and rented out my PPOR for < 6 years. If I then sold it, it would remain completely CGT free even though my actual PPOR was down the street and I merely elected the rented property as my PPOR.
Have I misinterpreted the main residence exemption? Would love to hear your input.
Thanks!
Anyway I was hoping some tax professionals could help me with my question. Why is the main residence exemption only available if you move out completely?
e.g.
Scenario 1
If I bought a house, established it as my PPOR, and then decided to rent out one of the rooms while still living in there. I'd be up for CGT when I sell the house as I used it to produce income, however it never ceased to be my PPOR.
vs
Scenario 2
If I bought a house, established it as my PPOR, moved out and rented a room in a house across the road, and rented out my PPOR for < 6 years. If I then sold it, it would remain completely CGT free even though my actual PPOR was down the street and I merely elected the rented property as my PPOR.
Have I misinterpreted the main residence exemption? Would love to hear your input.
Thanks!