Moving into IP then later selling

Discussion in 'Accounting & Tax' started by Ian87, 8th Feb, 2018.

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  1. Ian87

    Ian87 Well-Known Member

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    Hi all sure you will be able to help me with this question.

    We have a property which has solely been used as an IP since contracted in July 15, we are considering moving in then selling a few years later. We have no other PPOR. I have read various threads were people do this the other way around but cant find an answer for doing it this way.

    How would CGT go in this case, would we need to get a valuation at the time we decide to move in then and subsequent profit is CGT free? Or can it be as a proportion of the overall gain?

    Thanks.
     
    Ian87, 8th Feb, 2018
    #1
  2. Terry_w

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

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    Terry_w, 8th Feb, 2018
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  3. Paul@PAS

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

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    The value of the property is of no regard. The actual profit is apportioned between taxable use and exempt use based on time. But some private costs when you live there can reduce the overall profit that is apportioned.
     
    Paul@PAS, 8th Feb, 2018
    #3
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