Cgt

Hi guys,

If i was to make my next IP purchase at some stage my PP0R for say a year of so, when selling the home in the future, will this mean i will be exempt from paying capital gains tax? or will i only be exempt from paying CGT for the year in which i lived in it? What are ways to minimise paying CGT if their are any? Just thinking ahead here.

Nika.
 
Move in first and make it your PPOR immediately then you can move out for up to 6 years without affecting the PPOr status. Remember you can only have one PPOR at one time.

Cheers
 
Thanks andy.

Do i have to live in it though for a certian period of time before i move out? During the 6 years in which i move out am i able to rent it out and still be exempt from the CGT or must i leave in vacant?
 
Like the others said, you have 6 years, but you can only have one PPOR at a time. Although there is no time limit for you to live there before renting it out, make sure it is long enough to accumulate a few bills in your name while residing there. If you are planning on using the FHOG to purchase this home, then it would be prudent to stay there for at least 6 months.
 
Like the others said, you have 6 years, but you can only have one PPOR at a time. Although there is no time limit for you to live there before renting it out, make sure it is long enough to accumulate a few bills in your name while residing there. If you are planning on using the FHOG to purchase this home, then it would be prudent to stay there for at least 6 months.

Hi skater,

Thanks for that! :D

I haven't yet used my FH0G. If i wanted to nominate this next property as my PP0R would i have to use the FH0G? or can i defer the FH0G onto my next purchase and still make this purchase my PP0R?
 
Hi skater,

Thanks for that! :D

I haven't yet used my FH0G. If i wanted to nominate this next property as my PP0R would i have to use the FH0G? or can i defer the FH0G onto my next purchase and still make this purchase my PP0R?

No, if you are planning on living in this house you will have to use your FHOG on this purchase, or you will forfeit it.
 
Don't sell. Or do what we're doing, realise we've got two houses - one with a massive CGT bill coming, one with pocket change CGT if we sell it, so we moved into the one with the capital gains and the other one is now an IP that I'll probably never sell, and have it as a little slumlord pad forever. We're planning to sell the one with the big gains next year after it being a PPoR for around 2 years - we need the lump sum money more than any rent it would give us.
 
If you buy a property and make it you PP0R and live in for say 3 months, and then move out and rent it out for 4 years or so then move back in again, can you still deduct home loan interest expenses when doing tax return for those 4 years in which it was rented out?
 
If you buy a property and make it you PP0R and live in for say 3 months, and then move out and rent it out for 4 years or so then move back in again, can you still deduct home loan interest expenses when doing tax return for those 4 years in which it was rented out?

Yes you can.
 
Move in first and make it your PPOR immediately then you can move out for up to 6 years without affecting the PPOr status. Remember you can only have one PPOR at one time.

Cheers

this is the step that trips a few people up. you can call this house your ppor for up to 6 years after you move out ... but you cannot call any other house your ppor during that period.

so, if you move out and go renting - fine. if you move out and buy another house to move in to, you must decide which house you want to call your ppor for cgt, land tax etc purposes - you cannot claim both.
 
one with a massive CGT bill coming, one with pocket change CGT if we sell it, so we moved into the one with the capital gains and the other one is now an IP that I'll probably never sell
So if you never live in a IP previously, can you just move in for a short while to make it your ppor just before you sell ?
 
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