Category «Capital Gains Tax – General questions»

Third Element in spreadsheet and PPR aportionment

Question Hi Julia,I would like to get a clarification of a question that my accountant asked.I have completed the BanTacs CGT calculator spreadsheet and all is fine. The concern she has is that with all the items of the Third Element( Costs of Ownership) included then in line 57 (Percentage of Time Not Covered by …

Cost Base of property & Frjnge benefits tax

Question Hi Sir/Madam,I have a property in a trust (not trading trust, just a discretionary family trust) which is really my home residence. The residence was put in a trust for asset protection as my job can get sued personally.Question 1:As there was no rental income generated in the trust as I have been living …

Capital Gains PPR Exemption

Question Hi Julia.I have a client who purchased a house in Aug 2008. Upon purchase they moved in straight away until they left the house in Jan 2012 from which time it was rented until sold in March 2016.From the time they moved out they rented another property until July 2016 at which time they …

Investment Property Capital Gain tax, GST implication for Splitter Block

Question I purchased a splitter block in Sep 2015 in Brisbane via unit trust. Me and one of my relative – both hold 50% of units personally. It was settled in December 2015. My intention was to rent house while subdivision plan were in progress. Once subdivision is approved(into 2 lots), I want to demolish …

Transfer of Ownership – non resident tax purposes

Question Parents would like to transfer the ownership of vacant residential property (with house) to daughter (above 18 years old).The Parents are non residents for tax purposes (do not stay more than 180 days in Australia a year)What tax implications are likely to be faced & any strategy to minimize any potential tax implications.Facts:Property purchased: …

Sequence of sales for main residence exemption

Question Dear Julia,I have a question about the main residence exemption.I have two properties which will need to be sold in the next year. I would expect there to be a modest but not insignificant capital gain on both properties.I purchased property A in September, 2013, and lived in it for 15 months, and it …

Capital gains Tax

Question I would appreciate your advice on the following in regard to Capital Gains tax.My wife and I as joint tenants own a property at Nerang, Qld, which we held as our primary residence for many years.Since moving to Sydney 4yrs 9 mnths ago we have rented it out.Approx 3 yrs ago we moved into …

6 Year rule

Question Hi,Is it possible to reset the 6 year rule so I can continue to receive rental income and claim PPOR CGT benefit if and when I decide to sell the property. If so how?ThanksCathie Answer Yes, you can reset the 6 year rule as many times as you like but it is important that …

CGT on new dwelling

Question Hi Bantacs· September 2012 we bought a property in Melbourne East. The property had a small house with a large backyard. After settlement we occupied this house. We had two kids at that time both Autistic. After the birth of my third child we decided to build a larger town house in the back …

Rental Property CGT and Residency Issues

Question 3 February 2016Good morning Julia.I need help in working out if there are any Principal Place of Residence (PPR) CGT issues for a client who is currently working in Hong Kong. They pay rent in Hong Kong for their living arrangements.The client has one house in Australia in which they first lived (before renting) …