A bought a new apartment in NSW in 2014 Jan, got first home buyer grant. A rented the property for a year and started to stay in that property from 2015 Jan and sold in 2017 Jan. Does a have to pay CGT?
Insufficient details. It appears you may have rented the property first THEN it became a residence. Thus CGT would always apply to the initial period. A main residence must have been YOUR main residence before full or part exemption commences. You cant intend for a property to be a main residence. It seems that the test is not met. So a part of the time will then taxable. Pro-rata. (And no you cant get a valuation to apportion the profit) All of the conditions for entitlement also must be met. I dont know if your partner owned a property and you are each seeking to claim a full exemption (not allowed). Or if you have departed Australia and are now non-resident etc....Maybe you didnt really live there or shared your time there and somewhere else etc.... Tax advice involves understanding all the facts, specific dates and then arriving at an opinion. This forum is for general discussion and you cant expect personal tax advice based on a simple question that lacks information. Its like phoning your Doctor to ask why you feel unwell.
Is A a trustee or a company? is A the legal owner and Beneficial owner? A resident? Did A claim any other property as the main residence during this period? Was the property income producing while A lived in it? Was A entitled to claim any of the interest while living in it? is the property located in Australia? Was the spouse of A claiming any other property as their main residence? Was it actually the main residence? Is A part of the alphabet?
Hi Paul The property was intended to be the main residence, got FHBG but couldn't come to stay as was interstate. So rented for a year. Then stayed in that property for 2 years as MAIN RESIDENCE, then sold it and bought (on the same day) another MAIN RESIDENCE property with the same loan(Property Substitution). Partner didn't own another property and living in Australia. Thanks in advance.
[QUOTE="Terry_w, post: 544594, member: 28" Is A a trustee or a company? no, A is a couple. is A the legal owner and Beneficial owner? yes A resident? yes Did A claim any other property as the main residence during this period? no Was the property income producing while A lived in it? no, was not income producing while A lived for 2 years but it was income producing for previous one year. Was A entitled to claim any of the interest while living in it? no, it was a main residence is the property located in Australia? yes Was the spouse of A claiming any other property as their main residence? no Was it actually the main residence? yes for 2 years, then sold it and bought on the same day another main residence with the same loan(Property Substitution) Is A part of the alphabet?[/QUOTE] A means a Person. Hi Terry Please find information in italics. Thanks in advance.
Intention is not enough. It is not their main residence until they lived in it. This property cannot be exempt from CGT
Yes you pay CGT. But would only pay 1/6 (It was not your main residence for 1/3 of the time and you should be entitled to 50% CGT discount). Being an apartment It shouldnt be that high. Also from memory sounds like you illegally claimed the FHOG
LITTLE KNOWLEDGE DANGEROUS. DON'T BE SO QUICK MATE TO JUDGE- ILLEGAL. HAVE SEEN MANY OFFICIAL LETTER S OF FHOG FOR 365 DAYS EXEMPTION.
For your information, you can get 365 days exemption and in difficult situation, you can get even extension.
Why would OSR share anyones approval with you ? Yes you can seek extension. Each state and case varies on its won merit. Your personal position is not for judgement. Fact is FHOG has nothing whatsoever to do with CGT.
Geez no need to be defensive - For all anyone cares you could not report CGT and not get caught (Most of us do not get questioned on our main residence) - Though since you reported rental income there if there data matching picks it up its your problem with the ATO not ours I have seen cases where main residence has been applied for individuals that have moved in over a year after settlement but from memory none of them actually rented their properties out and their circumstances are not common. if you got the FHOG exemption were they under the impression you would rent it out first. Just curious, I do not actually care if you claimed legally or illegally (thats your problem with OSR not mine)
Reminds me Paul to be positive. One should not be using negative words to others without knowing in detail. As you said Paul this forum is for general discussion. I may have told you in refined language and you shouldn't have done - tit for tat. Sorry if u feel offended in any way. Smile, be happy, enjoy the day. Thanks a lot for the contributions u making in the forum.
Reminds me Terry to be positive and not to judge others quick and not to use negative words to others, think how would you feel if someone would have said same to you. Smile, be happy, enjoy the day. Thanks a lot for the contributions u making in the forum.
