Robs132 wrote:

Hello, If I sell my IP but I have never lived in it, is there anything I can do to demonstrate that I “lived” in the property within the 6 year window so I don’t have to pay CGT? Asking for a friend Thanks Bobby

No.

The requirement is not ‘live’ but reside in it as your main residence.

I still haven’t read the legislation but believe the risk is having to sell while being overseas – then there is no exemption, no 50% CGT discount and potentially huge capital gains tax as a result. I know there are some small concessions for dying overseas – but not much of a concession.

Well trusts are legal devices and only lawyers should advise on them. But transferring property to a trustee or declaring a trust over property will be a CGT event so perhaps a tax agent would be best for the first point of call as if the CGT is large you might not want to proceed.

Ones you think it is worth considering them  you need to seek legal advice on

a) the legal consequences, and then

b) the terms of the trust, structuring the trustee, how to fund the trust etc.

Actually first point of call might be a broker as not having the ability for the trustee to finance it may mean there is no point.

a casual worker would need 3 to 12 months in the job to be considered. If LMI is involved some lenders won’t consider casual works as the sole borrower.

You might be able to change to part timmme to help qualify for the loan

Sounds like it might be on revenue account or partially capital and partially revenue.

If you can get it on capital account you could potentially renovate, live in the first house for 3 months and sell it CGT free.

If you just want to reno and sell it would probably be on revenue account which might have a similar outcome anyway. Don’t forget to get advice on the GST aspects.

as for cost base you would need to apportion between the 2 factoring in both the land and the house.

see s 112-25 ITAA97 and s 112-30ITAA97

Don’t forget the deductibility of interest too.

The legislation still has an example involving someone moving overseas

Got an offset account to save into instead of paying extra off the loan?

You might need to go fulltime if you want to borrow further.

First thing to do is to look at the land tax act and the definition of principal residence and see if you have a choice. You probably don’t. It will be a question of fact, not the ability to select. See if there is a definition – which will probably be the one which is the ‘main’ place with all of your belongings.

If there is a choice possible, you would want to choose the one with the highest land value, so you should find out what the land value of each is worth.

Don’t forget to consider the CGT aspects too.

Everyone would pay tax! (Restaurants would go out of business)

Actually not everyone – some will barter. Bartering might even make a bit of a come back.

Yesterday or the day before CBA network was down, but all you would have to do, as a consumer, is to use another card from another bank. It would be harder for shops and those taking money though.

You would need specific legal advice, as what is suitable for one person may not be suitable for another. What works in QLD property may be too costly for NSW property for example. structuring loans will depend on who the legal ownership, serviceability, security value, other assets, interest rates etc.

If you have any specific questions ask away, I specialise in structuring.