+ Reply to Thread
Page 1 of 2 12 LastLast
Results 1 to 10 of 14
  1. #1
    Join Date
    May 2011
    Posts
    7,877
    Thanks
    3,397
    Thanked
    5,160
    Reviews
    8
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts

    Default Accountants help please...

    Just wondering if anyone has any understanding of the "6 year rule" regarding capital gains tax in Victoria?

  2. #2
    Join Date
    Jul 2015
    Posts
    7,033
    Thanks
    4,832
    Thanked
    4,289
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    with respect to rental properties and main residence exemption?

  3. #3
    Join Date
    May 2011
    Posts
    7,877
    Thanks
    3,397
    Thanked
    5,160
    Reviews
    8
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Yes I think so, we are selling a rental that was our primary residence until March 2010 and have just been told we may be exempt of CGT due to the 6 year rule

  4. #4
    Join Date
    Jul 2015
    Posts
    7,033
    Thanks
    4,832
    Thanked
    4,289
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    as long as the rental period doesn't exceed 6 years then you should be right.

    eg: buy and live in it as main residence, then rent it out (must be less than 6 years), then live in it again. you can do this over and over again so long as the period for which it is income producing doesn't exceed 6 years.

    if you satisfy that criteria, the entire sale is cgt free on the basis that you satisfy the main residence exemption.

  5. The Following User Says Thank You to turquoisecoast For This Useful Post:

    babyla  (18-11-2015)

  6. #5
    Join Date
    May 2011
    Posts
    7,877
    Thanks
    3,397
    Thanked
    5,160
    Reviews
    8
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Quote Originally Posted by turquoisecoast View Post
    as long as the rental period doesn't exceed 6 years then you should be right.

    eg: buy and live in it as main residence, then rent it out (must be less than 6 years), then live in it again. you can do this over and over again so long as the period for which it is income producing doesn't exceed 6 years.

    if you satisfy that criteria, the entire sale is cgt free on the basis that you satisfy the main residence exemption.
    Thanks. How long do you have to live in it again? And what constitutes living in it?

  7. #6
    Join Date
    Jul 2015
    Posts
    7,033
    Thanks
    4,832
    Thanked
    4,289
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    I can't remember how long you need to live in it for. from memory I don't think there's a set amount of time, the ATO bases it on fact. what constitutes living in it is things like: does your mail go there, is it your home address on the electoral roll and in your tax return, utilities etc all signed up in your name at the property etc. all the usual stuff you'd expect to see someone do with their usual home. I think they base it on those things, rather than giving a period of time. I think a period of time is easier to fudge than the other stuff I outlined, hence they look at the facts first.

  8. The Following User Says Thank You to turquoisecoast For This Useful Post:

    babyla  (18-11-2015)

  9. #7
    Join Date
    May 2011
    Posts
    7,877
    Thanks
    3,397
    Thanked
    5,160
    Reviews
    8
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Quote Originally Posted by turquoisecoast View Post
    I can't remember how long you need to live in it for. from memory I don't think there's a set amount of time, the ATO bases it on fact. what constitutes living in it is things like: does your mail go there, is it your home address on the electoral roll and in your tax return, utilities etc all signed up in your name at the property etc. all the usual stuff you'd expect to see someone do with their usual home. I think they base it on those things, rather than giving a period of time. I think a period of time is easier to fudge than the other stuff I outlined, hence they look at the facts first.
    Great. Thanks very much for your help!

  10. The Following User Says Thank You to babyla For This Useful Post:

    turquoisecoast  (18-11-2015)

  11. #8
    Join Date
    Nov 2013
    Posts
    1,684
    Thanks
    2,089
    Thanked
    1,408
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Quote Originally Posted by turquoisecoast View Post
    as long as the rental period doesn't exceed 6 years then you should be right.

    eg: buy and live in it as main residence, then rent it out (must be less than 6 years), then live in it again. you can do this over and over again so long as the period for which it is income producing doesn't exceed 6 years.

    if you satisfy that criteria, the entire sale is cgt free on the basis that you satisfy the main residence exemption.
    Not an accountant, but i don't think you need to live in it again. Just sell it within 6 years of moving out and starting to earn income from it? Must have been your primary residence first tho, as PP said, and u can't count anywhere else as your primary residence at the same time. Like PP said, i think moving back in does reset the clock though.

  12. The Following User Says Thank You to JustJaq For This Useful Post:

    babyla  (19-11-2015)

  13. #9
    Join Date
    Nov 2013
    Posts
    1,684
    Thanks
    2,089
    Thanked
    1,408
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Ps your state is irrelevant re CGT questions ☺

  14. The Following User Says Thank You to JustJaq For This Useful Post:

    babyla  (19-11-2015)

  15. #10
    Join Date
    Nov 2013
    Posts
    1,684
    Thanks
    2,089
    Thanked
    1,408
    Reviews
    0
    Achievements:Topaz Star - 500 posts
    Oh and i think there are also complicated things about you and your DP, if you have one, not being allowed to have different main residences to avoid CGT? I think this was to avoid rich couples being exempt frim CGT when one claimed to live in the city house and the other in the beach house ☺ Talk to your accountant if you have or do own a second property.

  16. The Following User Says Thank You to JustJaq For This Useful Post:

    babyla  (19-11-2015)


 

Similar Threads

  1. Tax questions, any accountants out there?
    By 2BlueBirds in forum General Chat
    Replies: 8
    Last Post: 15-04-2015, 18:39
  2. Any accountants on line?
    By masterchefMamma in forum General Chat
    Replies: 0
    Last Post: 23-11-2014, 15:21

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
FEATURED SUPPORTER
Baby MonitorsLooking to buy a baby monitor? :: Read viewer reviews of baby monitors BEFORE you buy :: Buy at a local or online Baby ...
FORUMS - chatting now ...
Bullying recoveryWorking Hubbers - Employed
CD8, Who's also at the start of their cycle and TTC?Conception & Fertility General Chat
IVF babies due March/April/May 2017#2pregnancy and babies through IVF
April/May TTC group chatConception & Fertility General Chat
IVF Babies due August/Sept/Oct' 16 #4pregnancy and babies through IVF
IVF/FET April & May chatConception & Fertility General Chat
High Natural Killer Cells #9Reproductive Immunology
REVIEWS
"Pigeon teats rule!"
by Alex
Pigeon PP Wide Neck reviews ›
"Wonderful natural Aussie made product!"
by Mrstwr
Baby U Goat Milk Moisturiser reviews ›
"Replaced good quality with cheap tight nappies"
by Kris
Coles Comfy Bots Nappies reviews ›