If I rent before buying am I exempt from capital gains?

Posted on 2010-06-22

 

Noel Whittaker answers your questions on property issues.


Question


I have rented a unit for 12 months and now intend to buy it, go overseas and rent it out.


Can I still regard the property as my home, even though I only lived in it while renting it, for both first home owner and capital gains tax purposes?


Answer


You will need to live in the unit for at least six months after buying it to qualify for the first home owner's grant.


Provided you do not claim any other property as your principal residence, you can be absent for up to six years without losing the CGT exemption.

This article is general in nature. Seek further advice before making financial decisions.

Source: Noel Whittaker SMH

 

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DISCLAIMER: Every care has been taken to verify the accuracy of the information contained herein, but no warranty is given or implied and prospective purchasers/ tenants are advised to carry out their own investigations. Details herein do not constitute any representation by the vendor. Lessor or the agent and are expressly excluded from any contract.