one chance at what? Like a get out of gaol free card? I don't think so.

For the period you claimed A as your main residence property B would lose the CGT exemption.

Nope.There is a limit of one main residence at any one time (except for a 6 month exemption when moving). So if you claimed property A from July 2011 to Aug 2012, property B would be be able to be exempt during this time even though you may have been lviing in it all this time.

paulandjo wrote:
All I can say is thank you so much for all the advice and I will def look at all options!! So many!!! I think that selling the neg geared property and making a loss wouldn't be so bad after all too. At the end of the day though i have no problem paying lots of tax, cause as said by someone earlier, "if you're paying lots of tax…[Read more]

QuickchickAn adult can earn up to $16,000 pa without paying tax. Jo said she is not working, so could receive a distribution from a trust up to this level (think it is a bit more) and pay no tax – assuming she has no other income and no other deductions.

I don't think so. It comes down to ownership – legal or beneficial.

Colin, I don't know that would work. You could assign an interest in your property, but if legal ownership didnt change then the tax deductions wouldn't change. ie expense portions between the spouses. 

There would be nothing your solicitor could do as the tenant is not yours. He could only suggest you not settle, or settle and then he could start legal proceedings to kick them out (at your expense!)

It could be a good idea to rent as you can rent out your home and still keep it exempt from CGT for up to 6 years. If your husband runs a business from home then you would claim part of the rent too.

Yes, the contracts would be binding (assuming all requirements met), but that doesn't mean people will honour them

They can refuse to leave indefinitely. It would then be up to the owner of the property to take them to court.

I wouldn't take early settlement for this reason. It is better to have the vendor keep this potential problem just in case. Some people are having problems finding accomodation for various reasons and some tenants just refuse to leave.

ColinHow does the change in financial arrangement supported by a lien on the property thing work?

It may reduce the tax – you would have to do the figures. It would also help you manage the CGT as there are other ways to reduce your overall taxable income such as prepaying interest, contributing to super etc

you can choose s 118-145(1) ITAA 97

I think the contract would be still binding in NSW on the seller. I would have to look at the terms again and haven't got one handy..Good Tyson – better late than never!

ferdinandch wrote:
Guys, I want to ask a question, the scheduled settlement date is 11/08 and I really want to settle early, say it 04/08, even though there is still tenant living there, I don't really care, I don't mind to pay interest from 04/08 to 11//08. Is it possible to do that? The sale contract said it will be vacant at the settlement…[Read more]

I think you will have to do the sums. It may cost you XX now, but it will save you ZZ per year in tax sort of thing. You then have to decide is it worth doing.You could possibly lease the property to a trust and then allow the trust to on lease it at higher rates. But you would have to do everything at arms length for tax reasons.

You will have to read your own contract to see what the terms are. This term could have been changed. (unlikely)

What state?If NSW, then under the standard contract the seller can terminate it if the deposit is not paid (cl 2.5). But the contract would still be binding.