Monthly archives: March, 2009

Tax impact when renting investment property to elderly parent.

Question Hi,I am looking at purchasing an investment property and my mother who currently lives with my sister has shown an interest in moving into it and paying a reduced rent. She doesn’t have much money overall, but is suggesting she put forward $80,000.00 towards the property.My wife and I would take out a loan …

Tax deductions on a rental property

Question Hi Julia,This question is a follow on from question #94 which you replied to on 22/1/09. The background to my question is the same, ie. –"My partner and I are currently living in our own home (with a mortgage). We bought the land on 23/8/2003 and moved into our newly constructed home in February …

Wash up Capital Gains Tax

Question Our deceased son left us his 10 acre Gold Coast rental property, which we have retained. Under council laws we are unable to divide the property until around 2020, but we can build a second house on it.Q. If we lived in the second house as our principal place of residence and continued to …

Owner Building & Capital Gains Tax

Question Hi there,My friend purchased a block in March 2008 with the intention of owner-building his principal place of residence on it.He has lived in a caravan on the land since he started building 1 June 2008 and is due to complete the house by the end of this month. He is now going to …

CGT and GST on property sale

Question In May 2007, we bought 2 houses side by side in a Sydney suburb as 2 separate lots. One house was purchased by myself together with my friend for $550,000.00; the other house was purchased by my brother for $550,000.00. We bought them as our first homes and we received the first home owners …