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Tax Tip 137: Claiming Stamp Duty on Properties located in the ACT (Part 2)

Discussion in 'Accounting & Tax' started by Terry_w, 21st Jun, 2016.

  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Claiming Stamp Duty on Properties located in the ACT (Part 2)

    See Part 1 here
    Tax Tip 136: Claiming Stamp Duty on Properties located in the ACT (Part 1)

    Some more questions to consider about claiming stamp duty on property purchases in the ACT.

    1. What happens if you buy an investment property and move into it part way through the tax year?

    This is pretty straightforward. You just apportion the duty between the 2 periods and only claim the part relating to the investment period.

    2. What if you buy an owner occupied residence and move out mid way through the year?
    As above.
    See
    PBR 1011948300688 for an example (you cannot rely on a PBR)
    RBA Content | Australian Taxation Office


    But the hairy issues are:
    3. What if you buy an investment property in 2016-2017 tax year and then move into it in 2018?
    You would have claimed the full amount in 2015-2017 already. Do you need to amend this?

    And, even more hairy:
    4. You buy an owner occupied place in 2016-2017 tax year but you move out and start renting it in 2018.
    Can you claim anything?

    The ATO seem to imply, in at least one PBR, that the apportionment should be worked out based on the “length of time the property will be held”
    PBR 1011948300688
    RBA Content | Australian Taxation Office
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I cant think of a single client with an ACT or Tasmanian IP.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
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    Location:
    Sydney
    lol!.

    Me neither now that you mention it!