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Will renting from my spouse save me CGT?

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Your Investment Property | 21 Aug 2012, 12:00 AM Agree 0
My partner and I moved out of my PPOR in Nov 2010 and into a new home in her name. How would capital gains tax be calculated in this instance? Can I lay claim to renting a room from my partner and pay no CGT?
  • Pascoe | 21 Aug 2012, 09:48 PM Agree 0
    Jimmy, I will answer this one in a simpler format matey......My partner and I moved out of my PPOR in Nov 2010 and into a new home in her name. I paid $185,000 in Aug 1997 and the value at November 2010 was $570,000. The house is now under contract for $520,000. I owe $149,000 on the property. How is CGT calculated? ANSWER: It is Nil as it is your PPOR. Can I claim a capital loss or is profit apportioned over time? ANSWER: NO, it is your PPOR. Can I lay claim to renting a room from my partner and pay no CGT? ANSWER: Not applicable, as you will not be paying CGT on your sold PPOR, all this will do will incur some part CGT for your wifes house further down the track when she sells.
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