Category «Capital Gains Tax – General questions»

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) …

Developing pre 1985 purchased p.p.o.r.

Question I have read your very informative booklet"How not to be a developer"and would like your advise on our project in regards to GST,CGT and p.p.o.r.We purchased our house in 1969,it has been our p.p.o.r.since then.In order to downsize as well as to finance living expenses we intend building a house at the rear of …

Avoid double taxation on winding up a Company Title Duplex

Question Thanks for your reply of 15th December Julia.Things are a bit clearer now, although still disappointingthat there is a significant double taxation. (The Company CGT plus the personal CGT).I can confirm that the father does comply with the PPoR exemption requirements you outlined.And I should have given you some $ amounts to work with. …

Is this a CGT event?

Question In the 2014/15 tax year, I sold an investment property (bought, held in my name only)and proceeds were deposited into a joint account to be used for expenses while grey nomading .My now ex husband took the opportunity (while I was in hospital) to transfer 2 amounts of $10000 each to his own personal …

Avoid double taxation on winding up a Company Title Duplex

Question Hi Julia.In 1998 my father and I formed a company to buy a duplex, so that he could live in one half, and I could rent out the other. The Company Title arrangement had a big advantage over joint tenancy since it allowed me to deduct the whole of my mortgage and running costs, …

Main residence exemption

Question Hi JuliaI have a complicated situation. I bought a house with my ex partner in approx 2006 for $298000 (I would also estimate we have spent at least $40000 since then on improvements to the property). We split up in 2012 but for various reasons I still have my name on the property and …

Redeveloping Principal Place of Residence

Question We are planning to knock down our principal place of residence (purchased Dec 1985) , build 2 townhouses, move into one and sell the other. If we sell the one we don’t intend to live in ‘off the plan’ before we knock down the existing residence can this sale be CGT and GST exempt …

Reduction CGT by Carry Forward Loss (In Company)

Question Hi Julia,If Company has a 1.5M carried forward loss (trading loss not capital) and sells a Commercial Rental Property (leased until 2021) with a capital gain (for example of 1M) does the Capital Gain ultimately just get deducted of the C/F trading loss. For example 1.5m minus 1m leaving the 500,000 c/f and no …

Sale off the plan – GST and CGT/Income Tax implications

Question I purchased a house in 2007 which I proceeded to rent out. In 2011, the backyard was subdivided with a second dwelling built and then also rented.The old, existing house was demolished a few months ago. That lot is in the process of being subdivided into two lots with construction started on two new …