We have bought our new PPR which was and still is tenanted. We cant sell our existing ppr and was wondering what the cgt ramifications are if we move into the new place and rent out our existing ppr until sold. there would be a huge cg on our existing place and I would rather not pay cg on it if there is a way around it. Is there some sort of waiver period if you intend to sell, but cant
cgt waiver period?
- Thread starter fernfurn
- Start date
I'll let the accountants answer that one but from my understanding if you move out of a PPOR and don't get another one in the meantime you will have no CGT payable if you sell it. If you do get another PPOR in the meantime then the CGT is apportioned according to how long it was an investment property so even if you did have to pay CGT it may not be that much.
There is a 6 month overlap rule, to cover you for this period when you buy another PPOR and have still not sold your initial PPOR.
Section 118-140 allows for your main residence exemption to apply to two homes for a period of up to 6 months. This is intended to allow you time to sell your old home after purchasing a new one. However be careful of the conditions.
To qualify:
1) The first home must have been your residence for a continuous period of at least 3 months in the 12 months immediately preceding the date of sale.
2) If you were not living in the first home at any time during the 12 months preceding the date of sale it can not have been used for producing income (i.e. rented out or used as a place of business).
To qualify:
1) The first home must have been your residence for a continuous period of at least 3 months in the 12 months immediately preceding the date of sale.
2) If you were not living in the first home at any time during the 12 months preceding the date of sale it can not have been used for producing income (i.e. rented out or used as a place of business).
Sorry to hijack the thread but does it mean that if i want to buy a new property ,also my first PPOR and claim FHOG ;live there for 4 months in first year then rent it out and shift myself to a lower rent property and i can still sell my first home in first 6 years without paying CGT ?
also can i again shift to my PPOR in 6th yar ,live there for another 4 months ,and i can repeat 6 year cycle ?
Kindly advice ...
No, it doesn't mean this.
It means if you are selling one property then you are able to have 2 PPOR exemptions at the same time for a period of 6 months.
