Helping Mum out

Viewing 8 posts - 1 through 8 (of 8 total)

tuggerwaugh
Participant
@tuggerwaugh
Join Date: 2007
Post Count: 192
December 21, 2009 - 7:50 pm
G'day all…
My mum has lived in her PPOR for nearlly 18 years, but 7 years ago bought a block of land and put a holiday shack up on it. She has never charged rent and only ever uses this shack for her personal use over weekends and holiday periods. Her financial advisor informed her she will pay CGT if she sells this property….. can someone either confirm or deny this and provide some reasoning? Cheers
Chris
crj
Participant
@crj
Join Date: 2004
Post Count: 618
December 21, 2009 - 8:02 pm
Confirmed. Sale is a CGT event and does not fall within an exemption. Cost base can be increased by rates, insurance, interest, maintenance.
tuggerwaugh
Participant
@tuggerwaugh
Join Date: 2007
Post Count: 192
December 21, 2009 - 8:11 pm
G'day crj…
Thanks for that. I just assumed that because it had not provided any financial benefits for her that perhaps she would avoid cgt or there may be som exemptions. Wrong…..thanks again anyway. Cheers
Chris
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
December 22, 2009 - 9:46 am
You only get one property which is CGT exempt. (except for a 6 month overlap period when you can claim 2).
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
tuggerwaugh
Participant
@tuggerwaugh
Join Date: 2007
Post Count: 192
December 22, 2009 - 11:09 pm
Thanks Terry….I learn something every day. Cheers
tugger
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
December 22, 2009 - 11:14 pm
And it is only one main residence per couple too.
IT pays to stay single!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Jacqui Middleton
Participant
@jacm
Join Date: 2009
Post Count: 2,539
December 23, 2009 - 5:05 am
Terryw wrote:
You only get one property which is CGT exempt. (except for a 6 month overlap period when you can claim 2).
Hi Terry, just wondering what you meant by "except for a 6 month overlap period when you can claim 2" ?
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone Me
VIC Buyers' Agents for investors, home buyers & SMSFs.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
December 23, 2009 - 5:17 am
Hi Jack
Section 118-140 of the INcome Tax Ass Act 1997
INCOME TAX ASSESSMENT ACT 1997 – SECT 118.140
Changing main residences
             (1) If you * acquire an * ownership interest in a * dwelling that is to become your main residence and you still have your ownership interest in your existing main residence, both dwellings are treated as your main residence for the shorter of:
                     (a) 6 months ending when your ownership interest in your existing main residence ends; or
                     (b) the period between the acquisition of the new ownership interest and the time when the ownership interest referred to in paragraph (a) ends.
             (2) Subsection (1) only applies if:
                     (a) your existing main residence was your main residence for a continuous period of at least 3 months in the 12 months ending when your ownership interest in it ends; and
                     (b) your existing main residence was not used for the * purpose of producing assessable income in any part of that 12 month period when it was not your main residence.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au