Moving into an IP



From: Rick Gibson

I have a question for all the tax people out there.

If I was to move into an IP to live as my PPOR and then sell it, would it be classified as my PPOR or still as an IP and how long would I have to live there to be classified as my PPOR for tax reasons.

I am just thinking of doing this at the moment and wondering if it would be beneficial?

Brisbane Freestyler Co-Ordinator
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Reply: 1
From: Sim' Hampel

If you have EVER rented out the property, then it loses its CGT exemption (except for the 6 year grace period when you move out of a PPOR temporarily).

So you would need to apportion the time between when it was an IP and when it was a PPOR for CGT purposes. You pay a portion of the CGT for the IP period, and pay no CGT for the period it was your PPOR.

This is a job for an accountant to help you work out me thinks.

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Reply: 1.1
From: Dale Gatherum-Goss


For the 6 year exemption to work, you must have lived in the property before you rented it out.

A Sim said, you will have a pro-rata exemption on the property depending upon how long you live there.

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