Selling existing PPOR

Discussion in 'Accounting & Tax' started by Frosty123, 16th Mar, 2020.

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  1. Frosty123

    Frosty123 Well-Known Member

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    Hi all,

    Looking at purchaisng a new PPOR in the next few weeks. My current PPOR would be put on the market for sale shortly after.

    My concern at the moment is that the property market may take a dive with this COVID-19 buisness before I have a chance to finalise a contract for the sale of my current property.
    Is there a hard and fast rule to dictate how long I can hold both properties for? For example; if I were to move into the new property, and leave my current PPOR vacant for 6 months before selling; upon selling the old property, would it be subject to CGT for the period it was vacant?

    Thanks
     
  2. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Frosty123 likes this.
  3. Frosty123

    Frosty123 Well-Known Member

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    Thanks Paul
     
  4. Frosty123

    Frosty123 Well-Known Member

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    '6 months ending when your ownership interest in your existing main residence ends'

    Does ownership interest end upon signing a contract, or transfer of the title (ie. settlement)?
     
  5. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Depends how you dispose. If its CGT event A1 (disposal with a contract) then the contract date is relevant.
     
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  6. Terry_w

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

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    Keep in mind it might be possible to sell up to 6 years later without triggering CGT.