Two PPOR

From: Aaron Dwyer


Hi all

Can you have 2 x PPOR??

1 in your name
1 in your spouses name

Thanks
Aaron
--
Aaron Dwyer
Freestyler Novice
~ To know and not to do, is really not to know at all.
 
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Reply: 1
From: Lesley .


What is a PPOR?
 
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Reply: 2
From: Sim' Hampel


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.

sim.gif
 
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Reply: 2.1
From: Dale Gatherum-Goss


Hi!

The tax law provides under S118-140 for you to claim 2 PPOR at the same time, under certain circumstances.

Generally, this is where you have sold one house and built another and you lived between them for s short time.

As far as I am aware, there is no provision for a husband and wife to claim separate PPOR.

Sorry.

Dale
 
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Reply: 2.1.1
From: Dale Gatherum-Goss


Me again!

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.

Dale
 
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Reply: 2.1.1.1
From: Aaron Dwyer


Thanks

I was speaking to a a couple that do this and it seemed a bit dodgey so I thought I'd find out about it.

The savings in CGT and Stamp Duty would be nice, but at what cost.!
--
Aaron Dwyer
Freestyler Novice
~ To know and not to do, is really not to know at all.
 
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Reply: 2.1.1.1.1
From: Projects .


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?

Projects

There is more than one way to climb a mountain.
 
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Reply: 2.1.1.1.1.1
From: Sim' Hampel


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.

sim.gif
 
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Reply: 2.1.1.1.1.2
From: Dale Gatherum-Goss


Hi Projects

Interesting thought . . . at face value I cannot see why each can claim their house as exempt under the circumstances that you quote.

Be careful though

Dale
 
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Reply: 2.1.1.1.1.2.1
From: Projects .


Dale,
Did you mean "each can claim" or "each cannot claim"?

Projects

There is more than one way to climb a mountain.
 
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Reply: 2.1.1.1.1.2.1.1
From: Dale Gatherum-Goss


Hi!

Ooops, that should have read . . .

Interesting thought . . . at face value I cannot see why each cannot claim their house as exempt under the circumstances that you quote.

Be careful though

Dale
 
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