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Selling PPOR, Live in IP for 6 months, no CGT?

Discussion in 'Accounting, Tax & Legal' started by samaka, 11th May, 2009.

  1. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    Hi all,

    Quick theoretical question. Say I have a PPOR I've lived in for a year. If I sell I pay no capital gains.

    If I then start living in an IP I've had for 6 months, then sell that - I can claim no capital gains cause it was my new PPOR?

    Is this right - or am I missing something?

    EDIT: I mean I live in the IP for 6 months (not owned for 6 months).
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Exempt only for time occupied as PPOR or deemed to be your PPOR.

    Need more information such as dates acquired, disposed of and use while owned.

    Cheers,

    Rob
     
  3. samaka

    samaka Well-Known Member

    Joined:
    30th Sep, 2007
    Posts:
    308
    Location:
    Sydney
    Ok,

    Say I bought 2 properties today. I moved into one and rented out the other. In 3 years time I sold the one I was living in. Any capital gain from this sale is exempt.

    I then move into the second property (i.e. no more renting) and live there for a year. At the end of this fourth year I sell the second property.

    So for the 4 years I've owned the second property, the first 3 years (75%) was rented out as an investment property and the last year (25%) was my principal place of residence.
     
  4. JustB

    JustB Well-Known Member

    Joined:
    15th Jul, 2007
    Posts:
    47
    Location:
    Sydney, NSW
    Samaka, that is correct - you'll be liable for CGT on the 2nd property for 3 of the 4 years of ownership.