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MondayMorning(Newbie)Newbie
27 May 2024

I currently rent a place in a location I need to stay in in order to get my second child into the same school as her brother. I cannot afford to buy a place in this suburb. So I intend to buy a place in the next suburb along, and move into it when both kids are in the same school (in two years). Can I elect this place to be my PPOR for CGT purposes from when I purchase it? It would seem fair to be able to do this when I own no other property, and will not own another in this timescale.

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2,751 views
3 replies

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
28 May 2024

Can I elect this place to be my PPOR for CGT purposes from when I purchase it?


Yes - if you move in as soon as possible.


So I intend to buy a place in the next suburb along, and move into it when both kids are in the same school (in two years).


This does not appear to be "unforseen circumstances," so not your main residence till you move in.


If the property is not to be rented, then best to move in immediately.


You could still keep the lease on the property you are renting now.


If property is rented, then it cannot be your main residence till you move in.


https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/moving-to-a-new-main-residence

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
28 May 2024

Can I elect this place to be my PPOR for CGT purposes from when I purchase it?


Yes - if you move in as soon as possible.


So I intend to buy a place in the next suburb along, and move into it when both kids are in the same school (in two years).


This does not appear to be "unforseen circumstances," so not your main residence till you move in.


If the property is not to be rented, then best to move in immediately.


You could still keep the lease on the property you are renting now.


If property is rented, then it cannot be your main residence till you move in.


https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-home/moving-to-a-new-main-residence

MondayMorning(Newbie)Newbie
28 May 2024

Thanks @Bruce4Tax. If I do continue to hold the lease, is there any specific timeframe I must live in the purchased property for before I elect to rent it out and can use the 6 year rule to reduce CGT? Cheers

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