Category «Capital Gains Tax – General questions»

Capital Gains Tax and Subdividing my PPR

Question I purchased my home approx 17 years ago for approx $200,000.I have lived in it for the entire time and it is now worth approx $1mill. It is possible to subdivide the land into two (side by side) blocks but I will not do so, if I lose the full capital gains tax exemption. …

Subdividing rear block & building to sell

Question We bought a 910m2 subdividable duplex block with an old house on it (Perth suburb), we signed the offer in July 2009 and it settled in October 2009.We planned to demolish and build a new PPORWe did not rent out the property.We demolished the old house in July 2010 and obtained a building licence …

Partnership building 2 residential apartments above a commercial property

Question Dear Julia,A bit of background information to start off with:· A friend and I bought a single-story shop over a year ago fifty-fifty with the intention of building two residential apartments above it, one each. On completion of the build we aim to sell off the shop, or if that isn’t possible, rent it …

Sale of family home by non resident

Question I am an Australian working in Hong Kong on a two year contract – non resident of Aus. We have rented out our family home since moving here in Feb however have decided to look at selling the property. Are there any CGT implications if we do this whilst a non resident? Answer Providing …

Capital Gains on a deceased estate

Question Hi,I am a Non-resident for tax purposes (Australian) having lived in Tokyo for over ten years. I inherited the family home after my mother passed earlier this year.I have been renting it to a family friend and have made significant improvements to it – (around $36,000 Australian). The Family friend would like to purchase …

Main residence exemption – rent not derived – ownership interests apportionment

Question Dear Julia,My husband and I are moving back to Australia in February 2012, when my current 3 year overseas work posting concludes. We have both remained Australian residents for tax purposes. My work involves an expectation of ‘regular’ postings throughout my career (for approximately 3 years out of every 6). My husband expects to …

PPR & CGT

Question Hi Julia,Our situation is such, we purchased an old weatherboard home in April 2009 planed to build a stock home on it to move in and then sell our PPR to pay down the loan. After engaged the builder, knocked down the weatherboard house in May 2009, we changed our mind in July 2009 …

An investment property changing to a PPOR, then being rented out again and then sold.

Question We have sold what was our PPOR and moved into one of our investment properties that we have owned for 8 years, during which time it was continuously tenanted. We intend to live it the house for 1-2 years but will probably move out and re-let it for several years, then sell it. While …

Sale of a home originally built to sell but rented for 3 years.

Question We bought a block of land and built a house on it with the intention of selling it on completion.The house did not sell so we rented it for 3 years.We have re-paid some of the gst that we claimed during construction,by adjustment each June BAS over the last 3 years, in accordance with …

CGT relating to holding costs of the principle place of residence that was rented out for 1st year of ownership

Question Dear Julia,My principal place of residence was used as a rental before I lived in it for the 1st year of ownership and I understand it will carry a pro rata CGT liability.I believe I can claim for any improvements to the property irrespective of when they were carried out and deduct this from …