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LT Act mentions 6 y exemption if:
owner lives elsewhere and does not own other property, and does not rent out more than 6 months a year for reasonable rent. The property is of the nature to interest families and no good tenant wants to rent for only 6 months in a year, nor I could afford to have it vacant other 6 months.Other 6 months, the rent should cover only owner’s costs as mentioned. If I charge only to cover them, I will have nothing to cover part of the loan. I tried to make a deal with the tenant to pay more the first 6 months and less other 6 months, what led to blackmails from tenant as they wanted to get into issues for their benefit. LTO also looks why the rent is distributed per months and if it is genuine.
Do you think that lease agreement 6 by 6 months has any weight?
Tax return still shows whole year rental.I do need to ask expert LT advise.
Any suggest re: potential CGT if I exceed 6 years of renting out? I have no object to pay taxes when I am due and can afford, but in this case, CGT could be higher than any rental benefit.Under current zoning I cannot subdivide yet at all- I would do it if I can.
When suburb is released for residential blocks subdivide, maybe then, even though might be better to accept developers offers- historically $1 mil per acre, down my road where is already done.
If I move in briefly after 6 years of renting it, with intent to rent it out again applying another 6 years living away, I cannot start with other CGT exemption- my understanding is that can be applied once only in total of 6 years.Re: land tax- Terry thanks for posting LT act.
Owner is exempt if owner lives and not has business activity on land.
If I receive reasonable income from renting more than 6 months in a year, I do not have exemption, unless rented out for specific tenants, like qualified primary producers.
There is high tenant interest for using land to produce income, but people do not do that in business-like manner, or if they do, they prefer not to be registered to ATO and LTO as primary producers- what is the criteria for approval.
Currently I rent out less than 1 acre, while 2 acre is advertised for rent available for primary producer, without luck so far.
I spoke with LT Commissioner, as 31/12 tenancy status determines LT liability for next year. I asked, if the most of the land is not rented out and is available at at end December, and LT is due to renting land, am I still liable?
He said yes , as there is no provision in the act to separate proportion of the land used by tenant, from vacant part available to rent, to reduce LT liability- in their books it is treated as one lot.
Same would happen if I rent part of the house only and live in part- I would incur LT and CGT for half off.
