Forum Replies Created
Found What I was looking for:
“If the person is buying the land with their partner, the exemption or concession is only available where both parties fulfil the eligibility criteria”.
-So it was looking good up until that point….
As for CGT, the property would’ve surely doubled in value in between the time husband purchased with his mum, to time of transfer to his dad for no financial gain.
We didn’t lodge a tax return for that year as we were in NZ for that entire financial year but maybe we should have?
Do you think that will catch up to us?Thanks Tony,
My husband is the only income earner but we’re both on the title. This will be our PPOR. So does this cancel out the benefit of 99%/1% rule?I’ve just realised I should mean CGT not stamp duty. We didn’t pay any CGT when he transferred the property to his dad. We weren’t even living in Aussie at the time. He just signed what he was told to and mailed it back to their solicitor. Assuming they didn’t pay it on his behalf, should we have been tracked down by the ATO by now for over due CGT?
Thanks guys.
My husband is a tunneller and today they are ‘breaking through’ (Airport link in Brisbane-Watch the news lol…).
He moves from tunnel to tunnel mostly in Australia and hasn’t been out of work since he began tunnelling 6 years ago but the first 6-9 months of any stretch of the tunnel, even if employed by the same parent company (Leighton/Theiss) involves 3 months with an agency and 6 months probation ‘on the books’….(politics about poaching…).
As they are breaking through today at his site, his payslips/shifts are all going to vary from the last 9 months as of next week and we only just finished probation with this job at the end of September!. He may even need to change sites again but hopefully not…
So while the job pays good, and we get a nice termination of employment pay out in between each tunnel, it stuffs us up with the banks needing you to not be on probation. Our serviceability is really good and we have no debts or bad credit…
Has anyone done a loan application for a client in this tunnelling/mining industry?Thanks Terry,
I’ve done some more research and I think I understand the issues you and Dan have pointed out and why my brilliant and cunning plan is absolutely flawed…(why I thought I could out-smart the powers that be on something I know nothing about, I don’t know…lol).Anyway, so CGT is calculated as per the sale price in the contract of sale, from the date of the contract is that right?
And is settlement the date I pay out the remaining balance of the purchase price or the date that I give the owner part of the amount upfront?
And it would be no use putting a lower price in the contract of sale if I need them to vendor finance half of it because I would need to show the equity being vendor financed to the banks when I apply for the loan? (And I would need that full 50% of the equity to be vendor financed to make it feasible). And I guess the banks would want to see what the vendor was getting out of it as far as a unit on completion, but does the ATO?Can we make a separate legal agreement to tie in a unit as part of an arrangement that the bank can be privy to, but that isn’t part of the contract of sale if the vendor understandably wants something in writing?
Are there any clever tricks or tweaks that I’m missing?
I’ve been processing your comments throughout the day. Thank you all for your input.
The situation has now become a little simpler now as I’m now only considering making an offer on one of the properties (the 1988 rental).
I do need to do some more research into the technicalities of vendor financing for a development.1. So capital gains tax is payable and calculated when the title is transferred? And that wouldn’t usually be at settlement when you hand over the inital cash outlay when doing 50% vendor finance for a development? Or is that more like a joint venture and is that totally different?
2. Is Capital Gains Tax calculated at the market value or at the ACTUAL capital gain (sale price less cost base)?
For example, if I gave them an initial cash outlay equivilent to the cost base and then gave them 2 of the 8 units upon completion which they kept and rented out. Would that avoid CGT & marginal tax all together?Be assured I will get professional advice before I do anything, but I appreciate you all sharing your knowledge…
