CGT question when selling PPOR that was once rented

Discussion in 'The Buying & Selling Process' started by SuperWoman, 7th Nov, 2019.

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  1. SuperWoman

    SuperWoman Active Member

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    Hi PC Gurus,

    We bought a PPOR around 2013 as FHB and stayed in the place for a year before renting the place.

    We then moved back to the house after leasing the property for 3yrs and we are still living there now...

    Between 2013 and now, we acquired a few IPs.
    Our intention was to move into one of them (IP1)though we ended up deciding to move back in the 1st house we purchased in 2013. However, we paid a ppor (reduced) stamp duty when purchasing IP1 though we never stayed in that property.

    Question is, now that we are considering selling the 1st house bought in 2013, are we liable to pay CGT or the tax office will treat this as PPOR and hence no CGT?

    Or the fact that we purchased IP1 as PPOR we lost that privilege?

    TiA
     
  2. Terry_w

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

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    It might be exempt depending on a few things
     
  3. SuperWoman

    SuperWoman Active Member

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    Thanks Terry, can you shed more light?
     
  4. Terry_w

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

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    You would have to meet all the requirements for the main residence exemption to apply such as establishment of the property as the main residence and the absence rule
     
  5. SuperWoman

    SuperWoman Active Member

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    Thanks Terry,
    How can i have that assurance before selling?
    Who is the right person to confirm and engage to avoid surprises!
     
  6. Beyond Wealth

    Beyond Wealth Well-Known Member

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    A tax agent could complete the calculation, or a lawyer could advise. Or with Terry being both, you can't go too wrong!
     
  7. Terry_w

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

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    Get some tax advice or take a gamble. Lawyer or tax agent
     
  8. Terry_w

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

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    I am not actiually a taxagent . I'm a lawyer and feminist.
     
    Scott No Mates and Beyond Wealth like this.

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