rental property..capital gains query

[eyesgreen_1]

If I sell my present home and I move into my investment property how does this effect capital gains tax when i eventually sell..and also if i inform the bank of this move will they automaticaly change my morgage interest rate from investor to owner occupier rate without any difficulty.. ?

 

[bacchus]

If I sell my present home

No CGT on your principal residence (PPR)

and I move into my investment property how does this effect capital gains tax when i eventually sell

pro-rata based on the number of years rented/number of years used as PPR and years of ownership

I think it's something like (if rented at least one year)

CGT on Profit * (years rented - 1) / total year of ownership
​

So, if you owned property 10years, rented it 3 years, lived in it 7 years, you would pay CGT on 20% ( [3 - 1] / 10) of the profit if any.

Open to correction though...

 

[eyesgreen_1]

bacchus thanks a mill for that...anyone know if banks would switch the morgage interest rate from investor to owner occupier without any problems ?...