Hi Guys,
just wondering if anybody can answer my question. My parents own a 10 acre property on which a kit shed was built with the ultimate aim of converting it to a home. They have owned it for approximately 15 years. At the time they owned no other property, but have since brought another house which is their PPOR. The original acerage was swapped for a house they owned. If they were to sell would they be up for CGT. The property has never produced an income
Only approx 5 acres of your main residence is exempt from CGT. You are also required to move into your main residence as soon as practical after its purchase. So I think your parents will be up for CGT, but there may be ways to minimise it fi they lived in the shed, or maybe even intended to. Speak to a good accountant or three.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terryw, kinda thought it might be along those lines
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