Hi, I am after some advice... if I purchase and live in a 2 x 2br duplex (on one title), but rent out the other 1/2 of it .... claim it as my PPOR ... and sell it in 5 years time... can I claim PPOR for CGT purposes for the whole amouunt or just half?? Also, same question, but if I buy a 4 bedroom house and rent out 2 rooms while living in it as my PPOR?? Thanks..
CGT on PPOR - DUPLEX
- Thread starter Goose
- Start date
Not an accountant, but you would expect you could only get the CGT exemption on the part you are living in. eg, what if you bought a block of 20 units on one title and lived in one? You couldn't claim the CGT exemption on the lot!
As for sharing a house, I think you would be better to charge "board" rather than "rent". OK, so you'll miss out on tax deductions, BUT those tax deductions will be apportioned based on any %age below market rent AND the %age of how much house each person "rents". Then you have the (potential) problem of apportioning CGT when (if) you sell. ie, you will lose some of your CGT exemption if you've charged rent.
Hope that helps.
As for sharing a house, I think you would be better to charge "board" rather than "rent". OK, so you'll miss out on tax deductions, BUT those tax deductions will be apportioned based on any %age below market rent AND the %age of how much house each person "rents". Then you have the (potential) problem of apportioning CGT when (if) you sell. ie, you will lose some of your CGT exemption if you've charged rent.
Hope that helps.
