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Answered in 58 minutes by:
8/3/2009
Maurice, Lawyer
Category: Australia Law
Satisfied Customers: 2,764
Experience: Lawyer (Juris Doctor, MBA IntBus) with 25 years Australian Business Experience at Your Service
VerifiedHello Alan
The scenario you have put forward will still attract a partial CGT event, the full exemption applies for a maximum 6 year term so you live in it for a year, rent out for 6, and then come back for a year and sell it CGT free.
In this case, where say it will be a total of 10 years rented out before you move back in, when you sell it 6 of the 10 years will be CGT free.
The link below gives a summary of the options available to you:
http://www.myfinance.com.au/rent-out-your-house-and-avoid-capital-gains-tax
and of course there is the ATO site which provides timely information on how to defer or rollover the CGT liability as well:
http://www.ato.gov.au/individuals/content.asp?doc=/content/36568.htm
I trust this information is of assistance and that you will kindly accept my answer as I wish you the best in this matter
Regards
Maurice
The scenario you have put forward will still attract a partial CGT event, the full exemption applies for a maximum 6 year term so you live in it for a year, rent out for 6, and then come back for a year and sell it CGT free.
In this case, where say it will be a total of 10 years rented out before you move back in, when you sell it 6 of the 10 years will be CGT free.
The link below gives a summary of the options available to you:
http://www.myfinance.com.au/rent-out-your-house-and-avoid-capital-gains-tax
and of course there is the ATO site which provides timely information on how to defer or rollover the CGT liability as well:
http://www.ato.gov.au/individuals/content.asp?doc=/content/36568.htm
I trust this information is of assistance and that you will kindly accept my answer as I wish you the best in this matter
Regards
Maurice
Maurice, Lawyer
Category: Australia Law
Satisfied Customers: 2,764
Experience: Lawyer (Juris Doctor, MBA IntBus) with 25 years Australian Business Experience at Your Service
VerifiedMaurice and 87 other Australia Law Specialists are ready to help you
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