CGT on PPOR?

Discussion in 'Accounting & Tax' started by adrian, 18th Nov, 2016.

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  1. adrian

    adrian Member

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    An accountant I spoke with said if I were to have equity release from my PPOR (due to an increase in valuation) for investment purpose, CGT will be applied on the amount used come time I sell my PPOR. Just wondering if this is true?
     
    adrian, 18th Nov, 2016
    #1
  2. Gockie

    Gockie Life is good ☺️ Premium Member

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    No, either a misunderstanding occurred or the accountant really knows nothing.
     
    Gockie, 18th Nov, 2016
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Its 100% crap. Find a new tax adviser. Even if its a misunderstanding their ability to identify and explain a tax issue obviously failed.

    Loan security (that all it is) is irrelevant for the purposes of deductions on the security property and affecting CGT. Any deduction would apply to the use of the proceeds and any CGT applies to the CGT asset acquired, not what it was secured against.
     
    Paul@PAS, 18th Nov, 2016
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  4. Ross Forrester

    Ross Forrester Well-Known Member

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    That is wrong
     
    Ross Forrester, 18th Nov, 2016
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  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Is this accountant actually a tax agent?
     
    Terry_w, 18th Nov, 2016
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    For now ?
     
    Paul@PAS, 18th Nov, 2016
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  7. adrian

    adrian Member

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    Thanks for all the comments! Yes, they are also a tax agent.
    Sounds like I got to change accountant.
     
    adrian, 18th Nov, 2016
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  8. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    "also".....Let me guess they also arrange loans.
     
    Paul@PAS, 21st Nov, 2016
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  9. Scott No Mates

    Scott No Mates Well-Known Member

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    You could be right Tonto, it's the Loan (Ar)Ranger. Hi ho Silver, away....
     
    Scott No Mates, 21st Nov, 2016
    #9