Do most of my bedtime reading on the forum, but just to liven things up a bit I’ve been browsing the ATO database lately. It’s a nightmare you don’t need to go to bed to enjoy. For example:
If you lose your deposit because you change your mind, it is not a capital loss unless the value of the property has decreased from its value when you made the offer (TR1999/19)
If you as vendor kept someones deposit it’s a capital gain in that year unless it is part of a continuum of events leading to a sale. This applies even to pre-1985 and PPOR real estate!! (TR1999/19A)
If you live in your PPOR 10 years then build in the backyard, you can nominate either as your PPOR. However, you will have to pay CGT on the 10 years increase in value on the other half, less the 6 month crossover allowance.
These are just basic CGT issues. There will 100’s more. Imagine what it’s like when you start doing complicated things with trusts etc!! You need a REALLY GOOD tax advisor. I have been using a group who act as advisors for over 100 accountants. But they had to warn me that I might not want to deal with them anymore because the ATO has sued them for advising someone on a scheme which was declared a tax evasion scheme. Imagine if every lawyer who represented someone who got convicted was charged as an accomplice!! But then, they’re the ATO.
Crikey, thats alarming! and interesting at the same time.
The ATO really depress me, each fortnight when i look at my payslip they always tax me! They are consistent buggers as well!
I wish they would forget just once.
*sigh*
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