Turning PRR to investment prop - what if I sell later?

[shellie_13]

Hey - just looking for some opinions although I know I probably need to get professional advice before making a final decision.....

I have owned and lived in my 2 bed apartment for the last 6 years.
Now I am thinking of buying a house which would be my PRR - and renting the apartment......
I think I don't have to worry about clawback of stamp duty etc.....

What if I decide to sell the investment property in 1 year or 5 years - how is the CGT calculated ?
What else should I think about - in relation to tax

 

[asdfg]

I think I don't have to worry about clawback of stamp duty etc.....

There will be no stamp duty payable

What if I decide to sell the investment property in 1 year or 5 years - how is the CGT calculated ?

Calc of CGT is Gain * Time as investment - 12 / time owned (in months)

Gain Calc as (Selling price - Expenses) less (Purchase price + expenses) Legal & Auctioneers Exps

What else should I think about - in relation to tax

See [broken link removed]

 

[shellie_13]

cheers - I couldn't find the CGT piece about PRR to investment......that helps

 

[Diehard11]

Shellie13
This is exactly what I would like to do myself and the answer you received is very interesting. Were you able to confirm this with revenue

Also, when you buy your second property which will be your PPR, do you expect to be able to write off mortgage interest against rental income (vice versa)

Any comments from those in the know would be appreciated

 

[asdfg]

Were you able to confirm this with revenue

While revenue give out info they may not give out the correct info. If unsure you should get professional tax advise

Also, when you buy your second property which will be your PPR, do you expect to be able to write off mortgage interest against rental income (vice versa)

You can only write off the mortgage interest paid on the rental property against the rental income from the time it becomes a rental property.
Don't forget you will have to cancel your TRS when you change your PPR to rental property.