Hi guys,
I have an issue that I’m trying to get my head around.
I’m purchasing a property in the ACT.
The intention is to make it an IP for the first 6 – 12 months and then move into it.
I’m doing this so I can claim the entire amount of stamp duty at the end of the 2009-10 financial year – it will put another $5k in my pocket (which I could really do with right now!)
So on to my question.
Is it true that if I rent the property out from the day we purchase it I will never be able to claim it as my PPOR? (Because the intention, in the ATO’s eyes, is that it was purchased as an investment property).
And therefore, would I be relinquishing the CGT exemption that would normally be granted to a PPOR in the event that we decide to sell in the distant future? (I’m assuming I would).
I wouldn’t want to gain $5k now at the expense of paying an exorbitant amount of CGT down the track.
Cheers,
Pretzel
I have an issue that I’m trying to get my head around.
I’m purchasing a property in the ACT.
The intention is to make it an IP for the first 6 – 12 months and then move into it.
I’m doing this so I can claim the entire amount of stamp duty at the end of the 2009-10 financial year – it will put another $5k in my pocket (which I could really do with right now!)
So on to my question.
Is it true that if I rent the property out from the day we purchase it I will never be able to claim it as my PPOR? (Because the intention, in the ATO’s eyes, is that it was purchased as an investment property).
And therefore, would I be relinquishing the CGT exemption that would normally be granted to a PPOR in the event that we decide to sell in the distant future? (I’m assuming I would).
I wouldn’t want to gain $5k now at the expense of paying an exorbitant amount of CGT down the track.
Cheers,
Pretzel