PPOR as IP

[whatever123]

Hi,

I'm in the process of buying a new property and I'd like to nominate it as my PPOR. However, I don't want to move in it right away; for various reasons I prefer to work (and rent) interstate for the next couple of years.

Is it possible to nominate this purchase as my PPOR and after I buy it rent it out until I'm ready to move in? My accountant seems to think so but I've been getting conflicting advice from a desk jockey at the ATO who seems to think I cannot (but could not point me to a specific piece of legislation).

 

[Simon]

You don't need to nominate anything.

Just move in when you want it to be your PPOR.

 

[whatever123]

You don't need to nominate anything.

Just move in when you want it to be your PPOR.

Hi,

This doesn't actually answer my question.
I want to nominate the property as my PPOR so I don't end up paying CGT when I eventually sell it. I don't want to complicate my life by later trying to figure out how much appreciation occurred during the time the property was not my PPOR.

So, back to the original question: Can I nominate a purchase as my Principal Place of Residence if I do not intend to move in immediately?
If not, is there a minimum period I must live in the property before it can become my PPOR and I can apply the 6 year rule where I don't pay CGT on any appreciation even if I don't live in it?

 

[zargor1]

Hi Whatever,

Firstly, check with your accountant whether or not the ATO issued a ruling in the latter half of last year which talked about "moving in as soon as reasonably possible".

There was a case where someone bought a property and couldn't move in until the lease had expired and the ATO knocked it on the head.

With your question regarding how long you ahve to have been in a property for it to be your PPOR, no set period, but make sure electoral role, private health care, driver's license are all changed as soon as possible. If you were in there for 1 week and then moved out, the ATO would obviously question this.

As with most things, time heals all.

Zargor

DISCLAIMER

This aint advice - check everything I say

 

[marg4000]

You cannot nominate a property as your PPOR until you actually use it as your principal place of residence.

To claim owner stamp duty you MUST occupy within 12 months.

So if you wish this property to be considered your PPOR from the purchase date you must move in as soon as you buy it. Not sure how long you have to live there, I think it is about 6 months. Otherwise it won't start being your PPOR until you actually move in.
Marg

 

[the helix]

You cannot nominate a property as your PPOR until you actually use it as your principal place of residence.

Thanks Marg for explaining it so succinctly and politely. I was going to ask the OP if they actually understood what a Principal Place of Residence really was.