Change ppor to ip and ip to ppor?

Hi I bought our ppor 6 years ago (in which it was rented out for 5 years.. 6 years is up roughly mid September this year).

We moved back to our ppor May this year but due to change to kids school and work circumstances we had to put it on the market and decided to move into of our ip instead.

My questions are:

1. Since we moved back into our ppor in May, did we reset the 6 year rule?

2. If we are unable to sell ppor and the 6 year tax exemption no longer applies to us, can we make the ip we are moving into our new ppor?

Thanks!

 

1. Possibly
2. Yes but it won't be CGT exempt later if sold

 

Thanks Terry, there is a buyer at present who is willing to sign the paper asap.. however the price is lower than what we want.

If the 6 year clock has not been reset for us, and since our exisiting 6 year rule applies only until mid september.. if the buyer signs contract tomorrow for
Settlement in oct or nov would that be ok? Or does it need settlement by mid sept?

 

What you want to ask is how to calculate CG if a contract is signed in november, for example.

 

I have a tax tip on this

 

Tax Tip 214: At what date is CGT Triggered? Part 1 Tax Tip 214: At what date is CGT Triggered? Part 1

 

1. First issue is whether the property was occupied as your main residence as soon as practicable after acquisition. If yes then the MRE starts at that date. The property is exempt while you live there. If no the MRE didnt start and may only commence from when you do occupy. Pro-rata CGT is now a requirement. BUT it may allow you to calculate the gain differently adding in private costs !
2. If 1 was yes, then from the date the tenant occupied the property s118-192 applies and resets the costbase to the market value on that date....and
3. You may use the absence rule while the tenant is there. UP TO 6 years after the date in 2.
4. If you move back in within the 6 years then the property may be exempt as it is your MAIN residence. The 6 year rule isnt relevant anymore. The 6 years is a ABSENCE extension.
5. If the contract for sale occurs within 6 years of the date in 2. the property may even be 100% exempt. If its more than 6 years the gain will be apportioned and only 6 years would be exempt. For example if sold after 6.5 years then 92.307% (6/6.5) will be exempt and 7.692% (0.5/6.5) is the total gain prior to splitting and also discount.