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‚ÄčThe potential pitfalls of renting out your home and moving back in again

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Your Investment Property | 30 Oct 2014, 12:00 AM Agree 0
Turning your home into an investment property could be the easiest way to start your investment journey. However, there are traps you need to be aware of, especially if you decide to move back in again. Eddie Chung explains
  • | 24 Dec 2018, 09:18 AM Agree 0
    Hi very interesting information but what if the situation is you purchase an investment property for 200k and rent it out for 5 years. After 5 years you sell your existing main residence and move into investment property as your new main residence for the next couple of months with the intention to do some improvements while living there and then sell.(eg.external /internal paint, new flooring,new carport, upgrade kitchen appliances) For capital gains tax purposes would it be worthwhile getting a valuation before moving being valued at say 220k. And once moving in and fixing it, selling it for 270k. So would i be exempt for the extra 50grand sold due to renovations while living in it or will it make no difference and capital gains just worked out by original cost base $200k less sale price$270k less exempt months living in it( 3months) less 50% discount
    or will it be worked out as origional cost base $200k less valuation$220k = capital gain @ 20k ÷ 50%discount =10k.
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