Anonymously paid rates

Interesting article.

'God's property' sells for $120,000 after owners refused to pay rates on religious grounds - ABC News (Australian Broadcasting Corporation)

 

Some people are just barking mad.

However they signed the purchase contract ! And title was in their name/s not ... ahem...God. Go figure. Unpaid rates are grounds for a first charge to be registered over property and a forced sale when / if its unpaid. At the final wekks they also get a clear instruction about the consequences if they dont pay.. Councils regularly conduct these firesale auctions which are often dilapidated properties on land. Not always.

The T&C for these public debt sale auctions is that the buyer pays all land tax and rates arrears as an additional cost - Some states I believe the costs are deducted from auction proceeds. In NSW the buyer pays the arrears as a settlement adjustment.

 

That's interesting, Paul. thanks.

 

@legallyblonde - sounds like you bagged a bargain

 

If they wanted the property to belong to god they would have transferred it to their church or a private ancillary fund for religious education.

Charities and not for profits pay less rates than the masses.

 

That makes me wonder - can I refuse to pay for my own medical expenses, based on the claim that 'God gave me a body that doesn't work properly', so it's not my fault, or my requirement to deal with its failures?.........

 

God may forgive you. The courts wont.

 

So many crazy Christians. So few lions.

 

Question.

When the unpaid rates get paid from settlement proceeds, does the buyer get an immediate tax deduction for it, or is it added to the cost base?

Quite a significant benefit if it's the former...

 

I would assume it is to the cost base as you bought it knowing fully it had the issues with rates.

Same as buying a burnt down house and rebuilding it is a capital cost and not a maintenance issue.