Moving in Investment Property

I bought my first property in November 2011 with Tenant (fixed term leasing till 1st week of June 2012). So it will be my IP till 1st week of June.So I am currently negatively gearing it.

Do I have to get a property valuation on the day I move in(as it been IP for 6 month), so that I can accurately determine my CGT liability in case I ever sell it in the future.

What would happen if I lived there for 3-5 years? Under current tax law, could I then turn it back into an investment property after I've moved out and I've bought a new PPOR?

How is CGT determined if I ever sell it down the track and is six-year vacancy rule applied in my case?

Regards,

Nik
 
I didn't realise that about the six year rule. So the only way to use that exemption is to live in the prop from day one?
 
That's what I'm given to understand. Julia H has some good info on all of this in her news flash monthlies and other freebies at www.bantacs.com.au
(we have no affiliation but I just like her insights on IPs from an accounting perspective).
 
I bought my first property in November 2011 with Tenant (fixed term leasing till 1st week of June 2012). So it will be my IP till 1st week of June.So I am currently negatively gearing it.

Do I have to get a property valuation on the day I move in(as it been IP for 6 month), so that I can accurately determine my CGT liability in case I ever sell it in the future.

No, you will be apportioning by time used as a PPOR

What would happen if I lived there for 3-5 years? Under current tax law, could I then turn it back into an investment property after I've moved out and I've bought a new PPOR?

Yes

How is CGT determined if I ever sell it down the track and is six-year vacancy rule applied in my case?

After you vacate again, you may use the 6 year absence rule, but that means you lose the exemption on your new PPOR. However you don't have to decide until one of them is sold, or your 6 years expire without reoccupying.

Regards,

Nik

Cheers,

Rob
 
Ok. That was my understanding. U can convert any of your props into a PPOR at anytime. However you can only have one PPOR regardless of previous status under your ownership. This PPOR can then be used for the six year rule.

Thanks for updating propertunity.
 
Top