Hi All,
Hope someone can help clarify the following. I just happened to be reading an API magazine from last year where in the Q and A section it states that if turn your PPOR into an investment property and you do not own a PPOR then it has CGT-free status for up to 6 years.
Our situation
Wife owned own PPOR before we Met
I owned my PPOR before we Met
Wife rents out her PPOR and moves in with me (before marriage)
We then sold wifes original PPOR (which was now an IP) within the 6 years of her having lived in it. Our accountant then completed our tax return and we paid 10K+ tax (CGT).
Now according to the comment in API magazine as my wife did not own another PPOR while renting it out she would be entitled to the GST-free status for 6years after moving out.
Can anyone comment on this? It was for the 04/05 tax year
BTW: API Magazine Ausgust 2007 page 83
Thanks
Ian
Hope someone can help clarify the following. I just happened to be reading an API magazine from last year where in the Q and A section it states that if turn your PPOR into an investment property and you do not own a PPOR then it has CGT-free status for up to 6 years.
Our situation
Wife owned own PPOR before we Met
I owned my PPOR before we Met
Wife rents out her PPOR and moves in with me (before marriage)
We then sold wifes original PPOR (which was now an IP) within the 6 years of her having lived in it. Our accountant then completed our tax return and we paid 10K+ tax (CGT).
Now according to the comment in API magazine as my wife did not own another PPOR while renting it out she would be entitled to the GST-free status for 6years after moving out.
Can anyone comment on this? It was for the 04/05 tax year
BTW: API Magazine Ausgust 2007 page 83
Thanks
Ian