An old thread but a good question. What do I do when I’ve purchased assets in my own name and then enter into a business with a risk of being sued. Asset protection has become an important issue.
Of course the first point of a call is a lawyer who can give legal advice on structuring. Worth discussing with them the benefits of moving to a…[Read more]
– consider whether you can use the six year main residence absence rule and the impact on any other property which may have been your main residence
– why won’t moving back in make a difference for CGT purposes ?
– look at third element costs to reduce the capital gain where appropriate
– did you really move into it and make it your PPOR ?
PTSMike started the topic Main Residence/PPOR and Absence Rule TRAP FOR BUSINESS in the forum Legal & Accounting 2 years, 3 months ago
a trap for those who use their main residence and part of the property is used as a place of business.
Under S.118-190 you cannot apply to the business portion of the property, the temporary absence rule
this will mean that the percentage of business usage will continue to be ineligible for the up to the entire 6 year period.
a trap for the…[Read more]
Seems to be some confusion regarding the main residence absence provisions and how they work.
This concession is sometimes referred to as the ‘absence’ provision or the ‘six year’ rule and does not just apply to moving interstate. It applies whenever you move from your main residence. Even if it’s ‘down the road’.
Where someone makes this ch…[Read more]
In both of these instances if the intention was to buy , develop and sell then it is on revenue account. CGT wont apply. So if the property was held for 2 years wouldnt matter you wouldnt get the discount. Even a profit from an isolated transaction can be on revenue account. Refer myers case. Tread carefully
Also be aware of any potential capital gains tax implications of making a beneficiary entitled to a trust asset. Need to look at whether CGT Event E5 applies.
PTSMike replied to the topic Looking for guidance on starting up new development company/trust in the forum Legal & Accounting 5 years, 10 months ago
Suggest you download and have a look at the e-book put together by Terry and I. It can be accessed at http://www.propertytaxsolutions.com.au It doesn’t cover everything and developments are a complex area of tax, legal and accounting.
You need to consider things such as income tax, stamp duty, GST, estate planning and whether you want the…[Read more]