Cgt

[Jayro]

Just want to clarify something. We purchased a property about 8 yrs ago. It was our PPOR and we purchased it for about $230k. Then we moved out 4 yrs later and it became our IP and it was worth around the $380-$390k mark. The property is now up for sale and is expected to sell for $370-$380k. Assuming this is the case am I correct in that we pay no CGT on this as it has not gone up in value since becoming an IP 4 yrs ago?

Cheers Jas!

 

[sparky23]

Don't they base it on purchase price and then calculate according to how long it was a ppor for to exempt part of the cgt?

 

[boomtown]

I would agree that you dont pay CGT. A more interesting question is whether you can claim a capital loss....

 

[INVSTOR]

It would have been best for you to get a valuation done when you changed it from PPOR to IP. If you did than no tax would have to be paid. I'm not an accountant but that's the advice I was given when I did the same.

 

[LynnH]

jayro

Have you purchased another PPOR since moving out of that property?

If you have been renting elsewhere, living with parents etc and NOT purchased another PPOR, then the sale of this house would be free of CGT under the six-year rule.

Cheers
LynnH

 

[INVSTOR]

Good point Lynn.

 

[boomtown]

Yeah good point.

 

[Jayro]

Just spoke to my accountant. I have purchased since moving out a new PPOR. However I just now need to get a written valuation done on what the prop was worth when I moved out. This will cost me about $500 but money well spent I think. He said it would have been easier if I did it 4 yrs ago but now is fine.

cheers Jas!

 

[u3228133]

have you been claiming any depreciation on the property while it was an IP? If so you i thought that you will need to lower the cost base accordingly?