CAT dwelling exemption

[Askaskask]

Hello,

I qualified for the dwelling exemption pre-2016 change and have 2 more years left to live in the property before 6 years is complete.

I currently have an opportunity to buy an investment property, but cannot understand the legislation and whether I can go ahead with that purchase eg have interest in another property.

Just to state I will continue to be living in my current place (dwelling exemption property) as my PPR.

Does anyone know if it possible to go ahead with the other investment purchase or will that trigger clawback?

*also I cannot sell the dwelling exemption property

Any help would be really appreciated.

 

[Gordon Gekko]

Hi,

You’re okay to buy another property now. The test is applied when you receive the dwelling.

And you could sell the dwelling if you reinvest the proceeds into another dwelling (with a pro-rata clawback if the proceeds are not fully reinvested).

Gordon

 

[Askaskask]

Great thanks for coming back so fast, honestly really appreciate your help as could not make head nor tail of the legislation.

So just to double-check Im ok to go ahead with the investment. Does it matter if I go on the title of the investment property & pay the stamp duty?