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Re: Do I pay capital gains tax if I move back into an investment property and it becomes my PPOR

I'm new

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My parents purchased an investment property in 1999 and live in it initially but it has been rented out as an investment property for the last 20 years. They are looking to move back into it and it will come their principle place of residence (PPOR) again. If they live in it for at least 12 months and it is their PPOR does this then make it exempt from CGT?

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Most helpful response

ATO Community Support

Replies 0

Hi @nelston,

 

Your parents will need to know market value from the time it was first used to produce income. Thereafter they can claim a 6yr absence rule if they did not own another property when they first moved out. If they did purchase another main residence to move into, the 6yr absence rule cannot be used.

 

They can look at the partial exemption for main residence for the time they lived there. We have information on our website to assist individuals working out their capital gains/losses.

 

Please use the links below.

 

Links -

Main residence.

Partial exemption.

6yr absence rule.

Market value.

Working out your capital gain or loss.

 

All the best.

2 REPLIES 2

Devotee

Replies 0

Most definitely not - they will be liable for CGT for the period it was rented out

Most helpful response

ATO Community Support

Replies 0

Hi @nelston,

 

Your parents will need to know market value from the time it was first used to produce income. Thereafter they can claim a 6yr absence rule if they did not own another property when they first moved out. If they did purchase another main residence to move into, the 6yr absence rule cannot be used.

 

They can look at the partial exemption for main residence for the time they lived there. We have information on our website to assist individuals working out their capital gains/losses.

 

Please use the links below.

 

Links -

Main residence.

Partial exemption.

6yr absence rule.

Market value.

Working out your capital gain or loss.

 

All the best.