Opportunity to help family member get into the property market. A child or grandchild may not qualify for a home loan in their own right, however the parents or grandparents don’t want to go guarantor, or want to ensure the child is able to make the commitment to purchase a
It is a widely recognised fact that capital gains tax (CGT) does not apply to a taxpayer’s main residence (PPR). What is less well known however is that the main residence CGT exemption can be extended to cover the time it takes to construct (or repair) that residence. In other
Property development could it be just a “mere realisation of an asset”? A “mere realisation of an asset” implies that the profits made are subject to capital gains tax with the benefit of the 50% discount, whereas otherwise would be seen as an enterprise, and subject to tax as
Airbnb and the like – There is estimated to be 115,000 properties listed across Australia in 800 towns and cities, generating $441 million in rental income in 2015/16 by 2.1 million people, averaging $119 a night, according to report by Deloitte Access Economics which was commission by Airbnb. So how
Capital Gains Tax on Deferred Property Settlements over 12 months A recent ruling on Capital Gains Tax on Deferred Settlement over 12 months by the ATO TD 94/89 has clarified a position in relation to capital gains tax – when a contract for sale has a deferred settlement period, this
CGT discount increased for affordable housing investors From 1 January 2018, the capital gains tax discount will be increased from 50% to 60% for resident individuals who invest in affordable housing. This measure was included as part of the housing affordability section of the 2017/18 Federal Budget. The conditions to
The average Southeast Queensland backyard is being split at a rapid rate by “mum and dad” investors. The Courier Mail has revealed the number of lots being approved for subdivision in Southeast Queensland has doubled in the past 5 years. Subdivision of lots approved have increased from 9332 in 2012
A client inherited a property from her late parents which was used as their Principal Home. The parent’s family home has been transferred to her as part of the estate. The two year period is now coming due as such she needs to determine what are the capital gains issue
A humble home with a hefty price tag. This plain Jane house at 65 Woodbury St, North Rocks, sold under the hammer this year for $1.17 million — $210,000 over the reserve. IT WAS once an exclusive club, but membership
Why are valuations in property transactions important for tax? There are times when a valuation is necessary for tax purposes. For example, let’s say that Mr Smith transfers his rental property to his daughter Mary for no consideration. The tax law, specifically the CGT rules, requires that the transfer be
If an Australian resident moves overseas and becomes a non-residence for taxation purposes, they can still access the Principal Place of Residence (PPR) exemption for Capital Gains Tax (CGT) indefinitely if they don’t rent out their PPR in Australia. Provided you have moved into the property as your main residence
Umbrella Accountants – Property Accountants Brisbane John & Mary bought a rental property in the year 2000, however, are now considering demolishing the house to build a new duplex. The old rental property was built in the late 1980s, is tired and causing lots of repairs and maintenance costs, and
