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Claiming FHOG on resold OTP properties

Discussion in 'Accounting & Tax' started by ryau86, 6th Oct, 2015.

  1. ryau86

    ryau86 Member

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    Hi All,

    If an investor is reselling her NSW OTP apartment prior to completion to a FHOG-eligible person, would the purchaser be able to claim FHOG on it?

    Thank you.
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    You wont be able to claim it even though the previous person has claimed the FHOG or settled on the property.
     
  3. ryau86

    ryau86 Member

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    What if the previous person did not claim the FHOG?
     
  4. tobe

    tobe Well-Known Member

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    Perhaps I misunderstand, but I reckon if it's sold before completion and the fhog buyer is the first resident of the property, they would be eligible for fhog. Perhaps its different in nsw, but that would be the case down Mexico way.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Once sold once it is no longer new property
     
  6. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Even if the previous person doesn't claim it you would still be ineligible. Crazy but true.
     
  7. tobe

    tobe Well-Known Member

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    Interesting. Like I said in vic it is first resident, how many times sold is irrelevant.
     
  8. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    New residential property is dealt with as a separate issue to the buyer being a first home buyer. (A two limb test).

    The new resi property issue is one of the GST traps for small time developers and even mums and dads who subdivide / sell who fly under the radar or report the sale as a CGT sale. ATO use the data from FHOG applications in NSW to identify "new residential property" for which the vendor is unregistered etc. I have had people contact me who were unregistered caught through this. They seem perplexed that OSR NSW share data with ATO relating to GST. I remind them that GST revenue is collected by the Commonwealth and shared by the states.