Wow about the AVO and losing your job with armaguard because of the need to be carrying….. interesting conundrum.

Terryw wrote:

The clock only sets to zero if it was the main residence at death.

Interesting because in the USA cost base is zero as of death date….though we have inheritance tax if sum is large enough.

Heres the relevant ATO inheritance and capital gains page

https://www.ato.gov.au/General/Capital-gains-tax/In-detail/Gifts,-inheritances-and-deceased-estates/Inheriting-a-dwelling/?page=3

Its ridiculous though….how would someone inheriting a property be able to determine TCB…..

especially this section

Example

Continuing main residence status

Aldo bought a house in March 1995 and lived in it. He moved into a nursing home in December 2010 and left the house vacant. He chose to treat the house as his main residence after he ceased living in it, under the continuing main residence status after dwelling ceases to be your main residence rule.

Aldo died in February 2015 and the house passed to his beneficiary, Con, who uses the house as a rental property.

As the house was Aldo’s main residence immediately before his death and was not being used to produce income at that time, Con can obtain a full exemption for the period Aldo owned it.

If Con rents out the house and sells it more than two years after Aldo’s death, the capital gain for the period from the date of Aldo’s death until Con sells it is taxable.

If Con sells the house within two years of Aldo’s death, he can ignore the main residence days and total days between Aldo’s death and him selling it, which would give him exemption for this period.

If Aldo had rented out the house after he stopped living in it he could still have chosen to treat it as his main residence under the ‘continuing main residence status after dwelling ceases to be your main residence’ rule. The house would be considered to have been his main residence until his death because he would have rented it out for less than six years.

If this choice had been made, Con would get an exemption for the period Aldo owned the house.

I’ve asked before but is there something that you can do to move a contract date…..eg if you write “an option to purchase on XYZ date” is this enough to move the date?

get an appraisal on Sydney property and rent on the GC for a year or 3, you’ve got 6 before it becomes a real issue……

Thanks for confirming Benny.

Is there any way to “delay” a “contract date” eg if you did want to “delay” a sale into the July financial year can you sign “an option to purchase” in the current financial year which is then “executed” with a contract signing once the 1st of July rolls around? obviously this would then be followed by a settlement 42 days later eg the 2nd week of August?

As far as the ATO is concerned the date of purchase then becomes the first date of the deposit right? eg they don’t consider the date of the 10% deposit to be the purchase date (eg if you make an small holding deposit pending finance approval)

Wondering how this is seen by the ATO if you have a long pending approval period

Benny wrote:

Check the situation for yourself – here:-http://www.sro.vic.gov.au/node/1873
Benny

Thanks for posting this.

Interesting that “you must self register” eg no way for govt to track if you don’t register…..

I find it very curious when govts expect you to know the rules but make no effort to reach out to you and say hey….we understand you own this and please pay xyz etc.

How is an offshore investor even supposed to know about this change if the govt doesn’t reach out to let them know?