Hi guys,
I've got a quick question about capital gains tax. About ten years ago I bought my first place with my sister. We both lived in it for 6 months. The property then became a rental until 2006 when my sister moved back into the property.She stayed there until 2008. I was also living in Perth at the time with my folks. My understanding is my sister is exempt from capital gains tax because of the 6 year exemption. If were to say I also lived with my sister in 2006/2007. Is there a minimum amount of time I would need to have lived there to qualify for the exemption?
Any advice would be appreciated
naremburn
Did you live there?
If you did then it could be exempt for up to 6 years. What proof do you have you lived there? What proof would the ATO have that you didn't?
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 for your response Terry. Well here is the problem. We didn't actually live there for the first 6 months. We only directed our mail there. My concern is the ATO could contact the electricity company and get confirmation that another account(name) was registered at that address at the time? Am I being paranoid?
Thanks again for all your help.
Naremburn
People often get paranoid when trying to break the law
This is exactly what the ATO could do and it would be very easy with data matching. But just because the electricity was in another name doesn't mean it wasn't your main residence.
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
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