Hi all, This might be an old common question, but just want to know: Say I have a PPOR all the way until I moved out this year and I purchased a new place to move in to. Do I still get the PPOR tax exemption for the year prior to the year I move into the new property and then just work out the market valuation of that year to work out the profit from the sale price later?, Or do I get taxed all the way from the price of acquisition as soon as I move into a new property that I own? There’s so many different answers from different sources, getting very confused on this.
have you considered how the 6 month overlap rule might benefit you ? Moving to another main residence
Several alternatives and yes it can be confusing. If anyone says to get valuations they dont know what they are discussing so ignore them. Here is the basic position - Sell A and UP to 6mths overlap allows both A & B to be exempt for that period as Mike indicates ie no tax. No impact on new home either - Sell A after 6 month and UP to 6 months is still exempt as well as new house (A may be partially taxable OR you can chosoe to defer this to B...AND - Choose A or B as main residence for the time that exceeds the 6mths. This may mean s118-192 never impacts the new home. Third element costs may need to be understood as many fear CGT but the third element costs could be a help. You need to understand how that may work to make a choice that is wise. If sold within 6 months its the easiest. Otherwise may be wise to understand all the tax issues by seeking advice.
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