If you buy a raffle ticket and win a house what are your tax obligations? If they say the house is worth $1m and you sell it for $1m is cgt payable? Since prizes generally are not taxable is a house diffrent?
There is no tax obligations in the "winning" of a house, AFAIK It may be possible to sell it without issue also, like taking a cash prize instead of the actual prize. Maybe @Terry_w has a tax tip on the subject of PRIZE'S ? Why wouldn't you move into it ? Congrats if you have won a house though
If you make it a PPOR within the accepted ATO limits of purchase & sale of old residence, $0. If you sell it, is the cost base $0, your lottery ticket price, say $10 or the sum of all of the tickets purchased for that draw or is it multiple draws over your life - if this was your documented investment strategy? ie huge capital gain (less any long term holding discount).
I gave advice to a well known lottery on this issue that accompanies their online sales of tickets. The winner faces no assessable concerns but as Terry observes the valuation of the asset gives rise to potential future CGT issues. For those winnings that encompass a bonus car and a furniture package and billion etc the outcomes can vary. Car. Not a CGT asset and unless business use concerns arise no tax on sale generally arises Furniture. May be Div 40 assets and some are NOT. Disposal of Div 40 assets gives rise to a assessable adjustment, disposal of other assets may not eg selling the linen and cutlery. Bullion. May be a seperate CGT asset. How the sale contract is drafted may be important to avoid some small element of tax. I have only once been approached and they wanted to sell it "as is" as a complete package and didnt want to consider breaking the sale apart. They kept the car and took the holiday etc. There are variations on this.
No. That isnt a reliable valuation and their date may differ from the date of the win (eg their cost). However for the furniture it may be acceptable. The "value" of some assets wont be close to cost. Think of linen. Its all open, used etc. So it may be worth far less than its cost. Ditto a car if it been used and demonstrated vs a dealer fresh delivery. I have always recommended a competent valuer attend onsite and apparaise all the elements and to break it into certain groups. Some strugge with "contents" and the lottery people have been known to advise the cost of those items (incl GST) to assist.
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