CGT on an IP turned PPOR

[menty]

Hi all

Am considering buying a property as an IP which may become a PPOR in the future.

Would it be wiser to move in initally (and rent the rooms separately), keeping PPOR status, or simply rent it out as an IP initially?

I currently have a PPOR turned IP which has already had an equity gain of approx 150K. (which if I sell before 6 years, can claim CGT exemption).

Are CGT gains for an IP tuned PPOR apportioned based on time, or the value of the property when it is turned into a PPOR?

I believe one cannot have 2 PPOR declared properties at the same time (its one or the other). My question is, does this declaration only occur when a CGT event occurs?

 

[Paul@PFI]

Hi all

Am considering buying a property as an IP which may become a PPOR in the future.

Would it be wiser to move in initally (and rent the rooms separately), keeping PPOR status, or simply rent it out as an IP initially?

I currently have a PPOR turned IP which has already had an equity gain of approx 150K. (which if I sell before 6 years, can claim CGT exemption).

Are CGT gains for an IP tuned PPOR apportioned based on time, or the value of the property when it is turned into a PPOR?

I believe one cannot have 2 PPOR declared properties at the same time (its one or the other). My question is, does this declaration only occur when a CGT event occurs?

The election occurs later (its based on how you prepare a tax return and treat the CGT issues) but should be contemplated at all times....

Unless a CGT gain is exempt then apportionment would be a requirement. No overlap of the exemption. And you cant generally value things and jump from one to the other without apportionment issues.

Also don't overlook land tax. Both may be subject to land tax.

 

[Terry_w]

And you generally cannot claim the PPOR unless you have lived in it first. e.g. if you move in after 6 months then the first period will never be exempt