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Tax Q&A: Claiming deductions & Six-year rule CGT calculation

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Your Investment Property | 07 Aug 2015, 03:52 PM Agree 0
This month Angelo Panagopoulos answers some reader questions about claiming deductions & the six-year rule CGT calculation.
  • peanut | 14 Oct 2015, 04:33 PM Agree 0
    Great article angelo on 6 yr exemption rule. Further to discussion, in our case PPOR was leased out after year 1 to become income producing. Between yr 1 and yr 6 i lived with parents and claimed deductions on property no1. After y6 i married and moved into new PPOR which was property No. 2.
    At year 13, property No 1 was sold. Is the 6 yr exemption rule applicable for property No.1 if i lived with parents between yr 1 and yr 6. I also note property no. 1 was purchased with FHOG. does this affect the outcome?

  • jenny | 26 Feb 2016, 02:20 PM Agree 0
    HI, would appreciate your kind reply to below Capital Gain Tax situation
    1. Purchased (Property A) on 27 Oct 2010
    2. Moved in straightaway& being my main residence until 13 February 2014
    3. Tenant moved in 14 feb 2014
    4 tenant moved out 5 May 2015
    5. Acquired a new property (property B!) settlement was around Nov 2013
    6 I moved to Property B on 7 December 2013
    7. Am still living in Property B currently
    8 property A is currently under contract & will settled in 12 April 2016

    For tax purpose this year :
    I would like to treat Property A as my Main residence to take advantage of the 6 year rule exemption

    1. I will not have to pay any CGT ? (full exemption as 6 year rule, being in that Property A from the begining & live there 3 years) Is that correct?

    2. I understand that Can only claim one main residence exemption at any
    one period if own two properties at the same time
    So having claimed Property A as my main residence,
    WHAT/WHEN is the time frame that I can Sell Property B without paying any CGT ??
    (Meaning to use the Main residence exemption for Property B)

    Would appreciate a kind replY PLEASE

    Thank you VERY MUCH
  • Matt | 05 Jan 2018, 02:11 PM Agree 0
    i am about to purchase my first property and planning on renting it out from day 1 but claiming it as my primary place of residence. is there a certain period of time i have to live in it before i move out and rent it out? or can i just claim it as my PPOR when i buy it but not actually physically live in it?
    • Property88 | 15 Jan 2018, 12:40 PM Agree 0
      Hi Matt, you need to reside in the property as your own residence in order to claim it as your PPOR. There is no set timeframe you have to reside such as 6 months etc, however they will look at your intention. If you reside in the property for 1 day then rent it out in order to avoid or minimise CGT down the track, that may raise red flags. If you would like us to pose your question to one of our tax experts for a more detailed response, feel free to email us as [email protected]
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