Cgt

[Kerryt]

hi just a newby on the block, great site, very interesting reading. ? if i buy, live in, do up property, then sell, do i pay CGT.

 

[Propertunity]

hi just a newby on the block, great site, very interesting reading. ? if i buy, live in, do up property, then sell, do i pay CGT.

Hi welcome,
You have not provided enough detail in your Q to tell.
i.e. If this was your only home - then NO, in this scenario there is no CGT.
If this was your only home and you had done the same thing 6 times this year, then the ATO may see you as running a business and then either PAYG or CGT may apply.
If this was not your only home, then yes, CGT would apply but you'd get a 50% discount on that if you held for over 12 months.
So....it all depends.

 

[Kerryt]

thanks that helps, it is my sons he has been in his own first home for 6 mths, done upn now just buying another, so will sell first, then do up 2nd while living in it. so there may be some implications if he sells that to soon
thanks again

 

[Jebb]

Correct me if I am wrong....but

If he has lived in it for 6 months and moves into another property, wouldn't he have to pay CGT at 100% rate (because less than 12 months, and the 2nd property would then be his PPOR)?

Unless he sells before buying the second. It is a bit difficult to tell from your post...he is buying the 2nd now, sell the 1st before doing up the 2nd? Or selling 1st now before buying/doing up 2nd?