If no mortgage then there should be nothing to discharge or register.

Not correct Benny

A valuation is only needed if an existing main residence becomes income producing.

In this case an investment property is moved into so a valuation can’t be used.
The CGT will be worked out on the portion of the time that the property was a rental.

example.
$100,000 purchase price.
Lived in it for 1 year, then moved in.
If sold for $200,000 after 2 years then 50% of this would be subject to CGT

If sold it for $1mil in year 20 then 1/20th of this gain would be subject to CGT.

So the longer you hold it the smaller the % would be.

‘roll over’ is a vague term. What do you mean by it?

1. Seek financial advice
2. Seek legal advice – why do you want to do this and do you know the consequences?
3. why?
4. seek legal advice and financial advice
5. seek legal advice and financial advice and ask yourself ‘why?’

Ethan Timor wrote:

Terryw wrote:

blackhotel wrote:

Terryw wrote:

The property as been a ip for less than 6 years exempting it from CGT

Just out of interest, how does an IP get exempt from CGT if it’s been an IP for less than 6 years? An IP property is never exempt from CGT unless it was your actual home.

Yes that is right. It must have been the main residence first. The op said he lived in it for 9 years prior to renting it out.

Doesn’t the rule of 6 years apply only if at the same time the owners don’t nominate another property as their PPOR? 🤔

Yes thats right Ethan. But the election only has to be made in the year of sale of the first of the properties.
So if someone owned 1 Smith Street, lived in it for 5 years and then rented it for 5 years and moved into a newly purchased 2 smith street (so he owned 2 properties for 5 years) then he could decide which of then to class as his main residence if he were to sell either Number 1 or Number 2 in say year 10.

If next door they probably have gone up at a similar rate so he might be better off claiming the number one being sold as he could avoid the CGT. The one being kept would be subject to CGT at a future date – but best to delay the payment of tax to the future. Plus the CGT could be minimsed by the 3rd element cost base expenses.

yes it could help. You would need to argue that you are not an owner of the business and do not have access to the company financials. If the shareholders have the same surname as you this may be difficult though.

yes should be able to. Interest on the deposit too. Don’t forget council rates as adjusted at settlement

Pity the testator didn’t get advice before doing their will as it could have saved you a fortune.

Unless the will allows the transfer to a trustee will be a dutiable event and therefore attract duty. It will also be a CGT event – which may be exempt depending on the situation. There may be ways to avoid this, but probably not if the transferee will be a trustee.

The trustee might as well borrow to buy the property from the estate or C

Has to be careful as he might lose the pension over this.

In that case none of the expenses would have been deductible. But keep records of them as some of the costs could be used to reduce CGT when you sell – not the travel costs though.

Did you plan to build a main residence on it or an investment property? Is there a house on it now?

“3 years ago I used equity in land to buy investment property bonded that land with the investment”
Do you mean you used the land as security for a loan used to buy an investment property?

Lisa wrote:

Hello,
We had sourced quotes and booked a contractor to build a new boundary fence (colourbond), as the old timber one was falling down. Our boundary is shared by an investor. Our issue is we were left with option but to purchase the materials and do the work ourselves. Therefore, we have receipts for proof of purchase, but cannot provide a Tax invoice for reimbursement. I guess my question is; can a investor still claim their share of the new fence expense, with an email trail, receipts for materials purchased by the neighbouring owners and photo evidence?

They could claim anything – but if audited they need evidence of payment and what it was for. Why can’t you give an invoice? no ABN needed