Renting out PPOR before moving in - CGT calc?

[Sam_H]

Hi Guys

We just purchased our PPOR.....but don't want to move in yet....were thinking roughly 12 months.

Just wondering if anyone had some calculations, so we could see what sort of CGT tax we would be liable for down the track.

Perhaps its worth moving in first, then moving out (for upto 6 years etc)


Figures (for example):

# Current Value $800k
# Rent out for 12 months
# Compound Growth @ 5%
# Value in 12 months time $840k

Then we move in a live as PPOR for 4 years

For ease of simple calcs....say we sell in 5 years...for $1021k....


How is my CGT calc performed?

Any help appreciated

cheers

Sam

 

[sunshine]

Hi Sam

We are doing the same thing at the moment. The advice given to us was to move in straight after settlement and make our PPOR and then move out and take advantage of the 6 year rule. The time frames we were given were 3 or 6 months. Qld has a concession for stamp duty if the prop is PPOR, but they are quite strict on the rules.

This advice was given to us as there is a significant difference in purchase price and valuation, so when and if we did sell GCT would be quite hefty.

As much as we hate moving, this one is definately worth the pain.

Sunshine