ATO 6 Year Capital Gain Exempt Rule - Investment Property

summithunter on 10/07/2020 - 21:35

Hi All,

Just seeking clarification in regards to this particular rule with ATO.

https://www.ato.gov.au/general/capital-gains-tax/your-home-a…

We are planning to build a new family home and rent out our current property.Existing property was purchased in 2012 and has been owner occupied since the purchase.

Based on the above rule does this mean I could claim deductions as an investment property once we move out and will be exempt from Capital Gain Tax if the property is sold within 6 years inspite of property being an investment property.

Thanks

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Comments

  • martinj on 10/07/2020 - 21:49
    +4

    You can only claim one property at a time as your primary residence. So if you are claiming your old place is your primary residence for 6 years, you'll also have to keep track of the capital gain on your new place for 6 years and pay capital gains tax when you sell your new place (whenever that may be).

    • summithunter on 10/07/2020 - 21:55
      -1

      Thanks for your response. Existing owner occupied property is solely in my name and new property is solely in my wife's name. I will have CGT exempt as i will be claiming this as my primary residence for 6 years .. given the new property is solely in my wife's name do i still need to keep track of the capital gain or will she also be exempt when sold subject to property has been owner occupied since purchase

      • Ti-au on 11/07/2020 - 03:04

        Names don't matter. Are you a couple? (yes), are you living together? (yes), well that is the new PPOR. You don't get two bites at the Cherry (usually).

        Talk to Terryw for much better information than what people on a forum will know.

        • summithunter on 11/07/2020 - 16:45

          Totally understand ..but just wanted to double check !

  • modsec802 on 11/07/2020 - 08:47
    -2

    This is why we have such unaffordable housing in Australia

    • Ti-au on 12/07/2020 - 18:31
      +2

      No.

      We have unaffordable housing because Housing/Banking lobby Government to let in unlimited immigration, as well s the fact councils/ state Governments don't want to invest in infrastructure to open up more housing.

  • dasher86 on 11/07/2020 - 12:56
    -2

    What did your tax accountant say when you asked them?

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