CGT on renting out property and then living in it

Hey guys,

We bought an established property recently that's still in settlement period. Loan is going to be under owner occupier as we initially planned to live in it straight away. Now we are considering renting it out for the first 6-12months to help save some money.

If we rent it out for the first 6-12 months and then live in it from then onwards, what would be the CGT implications when we sell it to purchase our next home. We plan to live in the home for 10-15 years. We're under the impression that if we don't live in it straight away we will have to pay a lot of CGT.

Next question, are we able to rent it out whilst on an OO loan, and claim interest deductions for the short period of time that it is rented out for. Do we need to state anything in our tax returns, will we get in trouble with ATO, etc.?

Thanks for all your help

 

Tax Tip 120: CGT and moving into an Investment Property https://propertychat.com.au/community/threads/tax-tip-120-cgt-and-moving-into-an-investment-property.10714/