Tax question

Hi everyone! Long time lurker but first time posting here. Can someone help me with this question (i Haven't contacted my accountant yet)
I bought an investment property (my first ever property) about 2 years ago and have been living in company provided accommodation since (interstate). The house has gone up about 80K approximately till now. If i move into this property myself, due to change of jobs and say sell it down the track in 2-3 years or longer, will i have to pay capitalism gains tax on it? If yes then how much of stamp duty and LMI can i claim on the 50% CGT bit. Or is there any other better idea to save/claim more on tax? Like live in a rental house myself?
Thanks all

 

If you never lived in it CGT would apply

If you lived in it when you first bought (confirm details with your accountant )

You avoid CGT if it is your PPOR (primary place of residence) and it remained your PPOR whilst you moved for work and lived in temporary company supplied accommodation

 

Every sale if a house attracts capital gains tax. However the main residence exemption reduces the liability to nil if the home was used as the main residence for the full ownership period.

In your instance the main residence exemption will only apply for part of the ownership period. The exemption is pro rated on a days basis.

So all of the ordinary capital costs like stamp duty and so forth will reduce the ultimate liability.

So the longer the property is held the higher the portion the main residence applies.

 

Have you confirmed whether you're a capitlaist, socialist, communist or fascist? Eaxh of these systems have different taxes levied.

Contact your local member to lobby your specific case after you have spoken to your accountant.

 

Yes CGT would be payable. It would be worked out on a % of the time lived in v rented out.

 

Yep, and the terminology that usually confuses people here is 'main residence' The point is that it can still be a main residence, even if you are not living in it.

This page is worth a read and the first 'Note' basically answers your question.

- Andrew

 

But it can't be the main residence until you have lived in it - with some exemptions for construction.

This is the issue with the OP.

 

Thanks bud.

 

Thanks mate.

 

i'll first need to find out whether the local member is capitlaist, socialist, communist or fascist to get any help from them!

 

Thanks mate