CGT 6 year exemption

Discussion in 'Accounting & Tax' started by Elicon, 14th Jul, 2019 at 7:59 PM.

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  1. Elicon

    Elicon Well-Known Member

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    Hi all,

    Have a question i am a little baffled by. My partner who is going to be my spouse moved in with me a few years ago and rented out her home she always lived in.

    Since then we purchased another property and moved in 6 months ago and I rented out my other property we initially lived in. New property is solely in my name.

    She is now looking at selling her investment property which was her initial PPOR and we are wondering will she be up for CGT on the sale as the 6 year rule cannot apply? If that is the case would it be applied similar to normal situations I.e cost base to sale or from when she moved out to live me?

    My accountant is on holidays so have no one else to go to.

    Thanks again.
     
  2. Terry_w

    Terry_w Broker, Lawyer, Tax advisor Business Member

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    will she? It depends
    Spouses can only claim one property between them but you have a choice of which one to claim.
     
  3. Elicon

    Elicon Well-Known Member

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    Ok. I definitely don’t want to claim mine as it’s of higher value and more chance of a higher gain.

    Am I right I’m saying if she needs to pay is it based from the day the property is leased out what the property is worth and then what it is then sold at? Will I need to get a valuation done of what property was worth a few years ago?
     
  4. Terry_w

    Terry_w Broker, Lawyer, Tax advisor Business Member

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    not necessarily.
     
  5. Elicon

    Elicon Well-Known Member

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    Ok. Looks like I’ll wait for my accountant to come back and get clarity. Cheers
     
    Terry_w likes this.
  6. Trainee

    Trainee Well-Known Member

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    It may be that you have a choice. But which choice is better financially depends on things like which property grows more and how long you keep it.
     
  7. Mike A

    Mike A Well-Known Member

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  8. Elicon

    Elicon Well-Known Member

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  9. Mike A

    Mike A Well-Known Member

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    Elicon...yes that situation is also covered there