Category «Capital Gains Tax – General questions»

Australian tax on sale of UK property

Question BackgroundMy wife and I (dual UK/ Australian citizens) have a house in London which we rent to tenants. We are registered with the UK’s tax authorities and, following interest, expenses and allowances, have had little or no annual tax liability on the property. UK tax Returns are submitted annually.The house has been leased to …

increase in value of land during construction stage

Question Land introduced into a partnership business, and therefore becoming trading stock at a price, rises in value during construction period because of market conditions. If this land had remained a capital asset, the tax would be determined by CGT provisions. Instead, the increase becomes revenue. Yet, the increase is a capital increase, not one …

CGT

Question Our land in NSW was bought by a holding company registered in the A.C.T. for a syndicate of 3 shareholders -two shares each) prior to Sept 1985.The land was in two titles (one 10 acres and the other 60 acres) and a house was built by an individual shareholder on each title (also prior …

The CGT main residence exemption

Question I am a retired Accountant/Tax agent and assist my Brother-in-law and his Wife to prepare their tax returns utilising Etax.This years tax (2012/2013 will be more complicated in that they have sold their Sydney investment property (Quakers Hill).Period of their occupancy and other data is as follows:29/03/1996 – Purchased vacant land at Quakers Hill …

Living in Granny flat and renting main house CGT implications

Question We own a 925sqm block with an existing house. We bought this property in 2001 and have lived here since. I am 56 and my wife is 57. We intend to retire when I am 60 in April 2017. Post retirement we plan to move overseas and live there for five years till I …

CGT and leaving Australia

Question I am sole owner of a trading Pty Ltd company and the sole trustee of a discretionary trust that owns eight investment properties.I have been a tax resident for 12 years but now wish to return to my home country.My trading company is over-capitalised and I would probably not be able to sell it …

PPOR with six year absence purchased 5 July 1991, rented July 2001

Question Purchased house and lived in it 5 July 1991Moved to USA and rented it 5 July 2001Moved back to AUS in 2010but did not move back into PPOR (did not have another PPOR)Sold PPOR 7 Nov 2011Question: Do I use reset cost base as at 5 July 2001 and if so, am I able …

Property Development

Question HiIn January this year (2012), we relocated from Melbourne to Brisbane to be nearer my parents due to their deteriorating health. Previously I have flown up from Melbourne for all my parents major medical appointments as I have a strong connection with my family.On a visit at Easter 2011 after toying with the idea …

Sale of UK PPOR

Question Hi JuliaI hope you are able to help. I have a number of inter-related questions about the potential sale of a UK property.I purchased a property in London in 2000, owned ¾ by me and ¼ by my sister although she is not on the title.I renovated the property and then moved straight into …

What is our cost base for CGT on PPOR with some income production.

Question I talked to ATO but still not clear on the cost base.We bought PPOR in 2004 and moved in asap. Plan to build a 1 bed unit on land but not subdividing. We will rent to a third party so under TD1999/69 it is a separate household. Income will be declarable.ATO says we apportion …