Does Div40 and 43 Deductions Impact PPOR Exemption?

Hi All,

I am currently renting my PPOR out as I have moved out during this period.
I would like to ask if I am able to claim Div 40 and 43 deductions?

If I do claim it, will it impact my PPOR CGT exemption?

(Yes - I will likely get a tax agent to help me this year with taxed. But looking for some information before i do that)

Thanks all!

Comments

  • Aren’t those for investment property?

    • I think it is for anything earning income. Someone please validate this. I am not sure

  • You can claim it for the period the house was rented out. E.g if the was house was rented out for 50 days - you should be able to claim it for 50/365. Have you got a schedule for the deductions.

    PPOR - see some guidance here. https://www.ato.gov.au/general/capital-gains-tax/your-home-a...

    • So far, my understanding is PPOR exemption won't be affected unless it is more then 6 years

  • If you are making taxable income and then you should be able to claim all the expenses for that portion IMO
    Just remember the 6-year rule, you can come back as long as you don't have another property as PPR.to claim CGT rebate on full.

    Might be a good idea to get property valued as of when you moved our by a local REA, incase your circumstance change. You will be able to use this value as your cost price and will still get 50% CGT rebate on the new calculated CG.

    • Okay, that makes sense. Just checking to make sure I had the correct thinking and there wasn't an edge case I needed to consider

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