Can a married couple own a ppor each, and be exempt from cgt?

Discussion in 'Accounting & Tax' started by Barny, 4th Aug, 2016.

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  1. Barny

    Barny Well-Known Member

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    Scenario.... Bob and Jane are married and live together in Melbourne. Jane had purchased the ppor in her name prior to getting married to bob. They live in this house together.
    Bob needs to move interstate to Perth to live for the next 5-6 years as his new role of work is there.
    Jane will continue living in Melbourne as her business is there.
    They will stay married as they have this thing called "love".
    Bob wants to buy a house in Perth as it's cheaper to buy than rent.
    Bob will live in Perth. Jane will live in Melbourne. They will see each other on a regular basis when ever possible.

    Can bob make the purchase his ppor?
    Can bob and Jane each hold a ppor each. And when bob finishes up in 5-6 years sell his house and not pay capital gains tax?
    Then bob will eventually move back with Jane. Will Jane's ppor be affected if they sell down the track in say 10 years. Will they need to pay cgt on Jane's house?
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I believe there has been some precedence for things like this and the answer was yes. It's a very specific outcome - usually it's around families and work - ie farmer Joe lives on the farm PPOR but his wife has decided to go live in the big smoke whilst the kids are at high school and gets a second PPOR. It's not forever and it's for a good reason.
    It is not for tax avoidance.
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    They can only claim one MR between them.

    Limited circumstances where each could claim one - such as a break down of marriage.
     
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  4. Barny

    Barny Well-Known Member

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    What's mr?
     
  5. Perthguy

    Perthguy Well-Known Member

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    Main Residence
     
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  6. Barny

    Barny Well-Known Member

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    Ok, so break down of marriage is one scenario.

    How about the scenario I gave? Was advised about this from a work colleague, that her husband just moved to Perth and they are going to purchase another ppor and their accountant said its legal. I thought she was full of crap, but it might be legit it seems.
     
  7. Perthguy

    Perthguy Well-Known Member

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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Simple - get a divorce. That usually solves the problem.
     
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  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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  10. Barny

    Barny Well-Known Member

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  11. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Sounds like I had read too many confusing topics about this and was probably wrong. This topic came up a few times on Somersoft
     
  12. Barny

    Barny Well-Known Member

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    I don't think you're wrong as yet.
     
  13. bob shovel

    bob shovel Well-Known Member

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    Are you bob? Nothing wrong with trying to beat the tax man
     
  14. Barny

    Barny Well-Known Member

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    Lol no not bob. I'm barny.
     
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  15. bob shovel

    bob shovel Well-Known Member

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    Ok barney ;) ;) we'll tell "jane" you have to go to Perth for important work and you will miss her ;)
     
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  16. Ed Barton

    Ed Barton Well-Known Member

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    Get a new accountant.
     
  17. Gockie

    Gockie Life is good ☺️ Premium Member

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    I reckon legal, but this is not official tax advice by any means.
     
  18. wylie

    wylie Moderator Staff Member

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    Ask for a private ruling and stop wondering?
     
  19. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It is legal for each to have a main residence but noth cannot be exempt from cgt for the same period.
     
  20. Scott No Mates

    Scott No Mates Well-Known Member

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    The alternative is to rent - see if the ATO will accept the excuse that you live there for work purposes only and claim as a deduction.