On 4/30/02 3:42:00 PM, Aaron Dwyer wrote:
>Can you have 2 x PPOR??
>1 in your name
>1 in your spouses name
From an ATO point of view for CGT, I believe (in my non-professional and possibly incorrect opinion)... that this is fine in certain circumstances... but you may run into trouble with the definition of "living" in a property.
If you don't live in it, then it can't be your PPOR (except for the 6 year rule thing). Apparently however, there are provisions for having a separate PPOR for your spouse and children (I assume for a situation where you are separated from your spouse and effectively maintaining two houses).
From the ATO's CGT 2001 guide:
"IS THE DWELLING YOUR MAIN RESIDENCE?
You need to take the following factors into account in working out whether a dwelling is your main residence:
- the length of time you live there – there is no minimum time a person has to live in a home before it is considered to be their main residence
- whether your family lives there
- whether you have moved your personal belongings into the home
- the address to which your mail is delivered
- your address on the electoral roll
- the connection of services (for example, telephone, gas or electricity), and
- your intention in occupying the dwelling.
A mere intention to construct or occupy a dwelling as your main residence – without actually doing so – is not sufficient to obtain the exemption."
- - -
From a FHOG point of view, this is not acceptable anyway, the rules explicitly state that you are only allowed one FHOG per family, regardless of whose name the property is in.
I just checked something else and found that the general rule is where both spouses live in separate houses, they can each claim 1/2 of the exemption. Therefore, neither house is wholly exempt from tax for either party.
I think you're opening Pandora's box if you play this game.
If a couple had been living in a house for a few years and spouse (A) had the existing ppor in A's name alone and the other spouse (B) goes and buys a new home in B's name alone for them to move into and they wanted to keep the first residence to rent out for 5 years, can A still claim the 6 year exemption when A then sells the first house as A is not owning any other property? What would happen to B if the second house is sold at a later date as it is B's ppor?
If you look at the example where you own a house as a PPOR, then move interstate and buy another house to live in without selling the original - but you have the intention of moving back into the other one within 6 years. Now you have to make a nomination as to which you will have as your PPOR, as you cannot (in general) have two PPORs... so only one of them will attract the CGT exemptions.
Now, I know this is not the same example, but I would imaging you would have a difficult time arguing for something different in the example in question.