Please disregard this post as it made more sense to post it as a separate topic: Company Versus Personal structure.
I’m certain the answer is in years not months, 5 years I believe, just ring the ATO on 132861 and follow the prompts to capital gains, only cost 20 cent.
And TeacherK6 what you posted is not true and what’s worse, may be illegal, you can’t advertise how to break the law to gain a financial advantage. You might want to think about deleting that posting my friend.To auspiciousdna;
How certain are you of this??? If someone pointed out to me that I was incorrect and I found this to be true, then I would have retracted my statement and apologised… Calling my comments illegal, and being an “advertisment on how to break the law” is just going way too far in my opinion… unless you are an accountant or a Lawyer (are you??)……..
Ok, now this is what I found in the most recent Booklet from the ATO….
One period of absence of 10 years
Home ceases to be the main residence and is used to produce income for one period of six years.
Lisa buys a house after 20 Sep 1985 but ceases to use it as her main residence for the 10 years immediately before she sells it. During this period she rents it out for six years and leaves it vacant for four years.Lisa chooses to treat the dwelling as her main residence for the period after she ceased living in it, so any capital gain or capital loss she makes on the sale is DISREGARDED. The maximum period the dwelling can continue to be her main residence while it is used to produced income is six years. However while the house is vacant, the period is unlimited, which meant the exemption applies for the whole 10 years.
In addition to this, because the dwelling is fully exempt as a result of Lisa making this choice, the ‘home first used to produce income’ rule (explained on page 56) does not apply.
Home used to produce income for more than one period totalling six years
In the 10-year period after Lisa stopped living in the dwelling she rents it out for 3 years, leaves it vacant for 2 years, rents it out for the next 3 years, then once more leaves it vacant for 2 years.
If she chooses to treat the dwelling as her main residence for the period after she ceased living in it, any capital gain or capital loss she makes on selling it again is DESREGARDED. This is because the period the home was used to produce income during each absence is not more then 6 years.
Pg 59, Guide to CGT, 2002-2003
Well??? what do u think of that??? it does sorta reflect what i was saying doesnt it???
As i also stated in my first response “I may be wrong” Im just human, but please, in future perhaps you should use a different aproach when you ‘believe’ that someone is incorrect!!!!!!!!!!!
Jason….
Quote:To auspiciousdna;How certain are you of this??? If someone pointed out to me that I was incorrect and I found this to be true, then I would have retracted my statement and apologised… Calling my comments illegal, and being an “advertisment on how to break the law” is just going way too far in my opinion… unless you are an accountant or a Lawyer (are you??)……..
Ok, now this is what I found in the most recent Booklet from the ATO….
One period of absence of 10 years
Home ceases to be the main residence and is used to produce income for one period of six years.
Lisa buys a house after 20 Sep 1985 but ceases to use it as her main residence for the 10 years immediately before she sells it. During this period she rents it out for six years and leaves it vacant for four years.Lisa chooses to treat the dwelling as her main residence for the period after she ceased living in it, so any capital gain or capital loss she makes on the sale is DISREGARDED. The maximum period the dwelling can continue to be her main residence while it is used to produced income is six years. However while the house is vacant, the period is unlimited, which meant the exemption applies for the whole 10 years.
In addition to this, because the dwelling is fully exempt as a result of Lisa making this choice, the ‘home first used to produce income’ rule (explained on page 56) does not apply.
Home used to produce income for more than one period totalling six years
In the 10-year period after Lisa stopped living in the dwelling she rents it out for 3 years, leaves it vacant for 2 years, rents it out for the next 3 years, then once more leaves it vacant for 2 years.
If she chooses to treat the dwelling as her main residence for the period after she ceased living in it, any capital gain or capital loss she makes on selling it again is DESREGARDED. This is because the period the home was used to produce income during each absence is not more then 6 years.
Pg 59, Guide to CGT, 2002-2003
Well??? what do u think of that??? it does sorta reflect what i was saying doesnt it???
As i also stated in my first response “I may be wrong” Im just human, but please, in future perhaps you should use a different aproach when you ‘believe’ that someone is incorrect!!!!!!!!!!!
Jason….
Did you write this
> what you do is buy an investment vacant, and “move in” either officially or just on paper (((((( or just on paper ))))))) ? saying you live somewhere when you don’t, to gain an tax advantage is illegal, like it or not !!!!!!!!!
In the 10-year period after Lisa stopped living in the dwelling
> Why didn’t Lisa just on paper say is was still living there, if that can be done ? Can you answer that ?
If you can prove me wrong I’ll apologies ! P. S. I say maybe illegal, if you can read.To auspiciousdna; (again)
Isn’t having a place VACANT for 3-4 years whilst still using it as ur main residence meaning that ur living there, but unoficially??? as in “just on paper”???
And, may i ask who has knocked on your front door recently to confirm that you are there???
Its just a matter of how u read the rules and interpret them… in the example given the person rented for 6y and had it empty for 4 years, then sold. Where was her time to actually “live” there?
But it was still her primary residence, as the example said…pg 53 of the same booklet also states that there is NO MINIMUM time in which a person has to live in a dwelling to make it their main residence…
call em if u like, u know the number…
Jason
You may only claim an exemption of CGT for one PPOR. There are exemptions where you buy your next home before you sell your old home and they overlap by a period, I think, of up to 6 months.
Cheers
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Quote:To auspiciousdna; (again)Isn’t having a place VACANT for 3-4 years whilst still using it as ur main residence meaning that ur living there, but unoficially??? as in “just on paper”???
And, may i ask who has knocked on your front door recently to confirm that you are there???
Its just a matter of how u read the rules and interpret them… in the example given the person rented for 6y and had it empty for 4 years, then sold. Where was her time to actually “live” there?
But it was still her primary residence, as the example said…pg 53 of the same booklet also states that there is NO MINIMUM time in which a person has to live in a dwelling to make it their main residence…
call em if u like, u know the number…
Jason
You still haven’t answered me why, she didn’t just say on paper she was still living there if that’s ok ? And just because no one checks doesn’t mean it’s ok or legal !
I have answered your criticism to the best of my
ability, using quotes from the tax office booklets that prove my arguments, if im still wrong then im just going on what the booklets say, but i think you hav lost your case… Where are u getting this information from anyway saying that im wrong?? so far u havn’t proven a thing… just told me that im wrong lol perhaps its you who cannot read my friend…..That is alll!!!!
Jason [
]Quote:I have answered your criticism to the best of my
ability, using quotes from the tax office booklets that prove my arguments, if im still wrong then im just going on what the booklets say, but i think you hav lost your case… Where are u getting this information from anyway saying that im wrong?? so far u havn’t proven a thing… just told me that im wrong lol perhaps its you who cannot read my friend…..That is alll!!!!
Jason [
]Lisa buys a house after 20 Sep 1985 ((( but ceases to use it as her main residence ))) for the 10 years immediately before she sells it.
. Not she buys a house and on paper says she lived there !
You have proved nothing and show me in your book, where you can buy a property and never lived there and it will be your PPOR ?To Karren
Hi,
My understanding is that you pay CGT on the proportion if time the property is an “investment” ie 1 yr out of ten in your case.
So CGT= profit X 1/10th X your tax rate Divided by 2
Should give you an idea of CGT.Hi traci-lee
thankyou kindly for that.
its not as bad as i thought
much appreciated
karen
]
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