Capital Gain tax implication on selling erstwhile PPOR

Hey guys,
I bought a home and land property in 2015(Property A). The property settled in 2017 and I lived in this property as my PPOR from 2017. I bought another property and moved into it in 2020(Property B). I then rented out Property A in 2020, however, so far I have not claimed any negative gearing benefits or depreciation for Property A. I now plan to sell property A. Do I have to pay capital gains tax on any profit that I make, given that I have never claimed anything in terms of depreciation or interest loss I have incurred on property A?

Thanks a lot!

 

Not enough info to say but it is likely A could be sold CGT exempt. Whether you claimed anything or not is irrelevant though.
But that could mean property B might be subject to CGT, but potentially small amount

get some proper tax advice

 

Probably won't have to pay CGT due to the 6 year absence rule; not claiming things doesn't affect this

Your tax agent should instruct you to keep records of ownership costs for Property B so future CGT could be NIL too

Also, why did you not claim interest or depreciation when it was rented out?

 

I have assumed not ÿet"claimed means returns not finalised. Take care with not claiming costs. The effect of it can still be a costbase effect on sale as well as third element CGT costs only get 50% of their benefit due to discounting. The key issue to consider is understanding third element costs on the new home, the efect of choosing the former under the absence rule. Its certainly not a case of choosing to pay $0 tax today as the "Best"option. It may not be

 

Thanks Simon what records are you specifically pointing at. I have all the records so far for Property B I think.

Ah this was my bad or rather a friend's advice, that if I don't claim any expenses on property then it will be considered PPOR otherwise partially PPOR.

 

Thanks Paul yes agree with your point, in fact, I would like Property B to be considered CGT free as capital gains on Property B are significant compared to gains on Property A. If however, its possible to pull both off as PPOR, was exploring that possibility.

 

Cost base of assets - go to 3rd element. I think Terry has a tip on it too

However I believe you would not be able to claim interest as a third element cost because the amendment period for your 2020 tax return has not yet lapsed. So you might be best to amend previous tax returns and claim the interest in relevant years when property was available for rent.

Any periods when not available for rent the interest could be added to cost base.

 

No its is NOT possible.