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SG-2020(Enthusiast)Enthusiast
3 June 2021

Hi, we bought a property about 25 years ago, the intention was to use that as an investment to start with and later to move into this property when we retire to down size and live there.

We have a owner occupied home that we currently live in for few years. Our son sold his house and wants to move in with us. We are thinking of moving into the investment property and live there and our son can live in our current home without paying any rent.

What are the tax implication on the property we used for investment all these years and will be occupying as principal place of residence?Thanks

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4 replies
3,460 views
4 replies

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Most helpful replyATO Certified Response

RenATO(Community Support)Community Support
ATO Certified Response6 June 2021

Hi @SG-2020,

There will be no tax implications on the investment property you intend to move into unless or until you sell it.

If you sell the property you will be liable to pay Capital Gains Tax. The capital gain will be calculated from when you purchased the property (contract date) up until the date it becomes your primary place of residence (PPR), as it is no longer an investment but your main residence.

You can find more information on this under CGT when selling your rental property.

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Most helpful replyATO Certified Response

RenATO(Community Support)Community Support
ATO Certified Response6 June 2021

Hi @SG-2020,

There will be no tax implications on the investment property you intend to move into unless or until you sell it.

If you sell the property you will be liable to pay Capital Gains Tax. The capital gain will be calculated from when you purchased the property (contract date) up until the date it becomes your primary place of residence (PPR), as it is no longer an investment but your main residence.

You can find more information on this under CGT when selling your rental property.

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SG-2020(Enthusiast)Enthusiast
7 June 2021

Thanks for your response.May I know what happens to exiting home that is owner occupied at the moment, we will be allowing our son to live without rent. When we sell this property what would be the tax implications ?

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