You can upgrade you own home (PPOR) free of CGT.My friend boasted that he never paid CGT, is that possible? But he moves houses every 1-2 years.
You'll have to ask your friendWhat I like to know is that did he buy all the houses in one shot,
He's allowed a 6 month overlap.or have to sell the house before buying the next one to avoid paying CGT?
Bill did not own any other properties during this time and is able to treat his home as his main residence and be exempt from capital gains tax on the house as he moved back in within six years.
Can he be allowed to claim deductions for his house when it's rented?
sounds like he is just pushing the boundaries for PPOR exemption. They need to be careful they are not now in the business of property trading
They are property developers!!
If they are indeed property developers, then they would not be paying CGT. The houses they build and onsell are treated as 'stock-in-hand'. Their development company would pay company tax on profits (after expenses) just like any other company, but it would not be CGT.
If their development company provided them with free accom. then they might be up for FBT depending on how they structure things (employee contributions etc), but again they are not up for CGT.
Bill purchased his house in Brisbane in January 2000. He moved in immediately and after six months went on a working holiday around Australia for one year. While he was in Tasmania he met his future partner Maria and lived with her in her rented flat for five years. During this time his home in Brisbane was rented out and was producing income. He returned to Brisbane with Maria and moved back into his home. Several months later, he decided to sell his home. Bill did not own any other properties during this time and is able to treat his home as his main residence and be exempt from capital gains tax on the house as he moved back in within six years.
hmmmm, puzzling, then why they need to move house every 2-3 years.......hmmmm,
but i want to know how to earn $$$