as you all have probably gathered from other threads, we bought our new ppr before selling existing. It came with tenants we have left in. We have now sold our existing and can shift in in 5mths. Obviously I have to declare the rent, and therefore claim expenses which will end up being approx llmths. Our intention was always just as a ppr, circumstances have just got in the way (i.e. the house came with existing tenants). How will this affect cgt if we decide to sell down the track?
short rental ppr
- Thread starter fernfurn
- Start date
You will be liable for CGT, proportioned between the time rented and the time PPOR. Take advice as there is a 6 month overlap allowed when you buy/sell a PPOR, but if rented for 11 months you will have some CGT liability.
You must keep good records, and retain all documentation until you sell the property.
Marg
The overlap rule has some stringent conditions. You must SELL the former Main residence. This rule is one which can disregard the CGT for UP TO 6 Months. If that doesnt work CGT applies to the whole of the period subject to you retaining the right to elect your main residence. You may choose to retain the MR exemption on the former home and treat the 11 mths on your new home as if it wasnt your main residence. This defers the taxing point to when you sell the new home...May be a long long way off. Or maybe never. The "election" isnt a form. Its how you deal with the CGT in the tax return you lodge.
https://www.ato.gov.au/General/Prop...ax/#Moving_from_one_main_residence_to_another
