Hi all,
My partner and I sold a block of land in WA. It was to be our PPOR but we had to relocate to Melbourne for work. It was owned for more than 12mths, so eligable for 50% discount.
Our accountant has told us that there is no CGT payable as it was to be our PPOR. [biggrin]
Is this correct? or should we get another accountant?[
!]Regards
Regrow
You are a fool for 5 seconds if you ask a question, but a fool for life if you don’t.
Seems reasonable, You are better off not paying any CGT (if it can be argued as your PPOR) than paying CGT as an investment property. I wouldn’t argue with an accountant who is reducing your tax.
If you are really worried, get the accountant to put it in writing with names and rulings they used from the ATO.
The tax office sometimes give different answers.
May all your dreams come true. (except for those evil dreams and maybe that dream where you had no pants on in school, oh, and that other dream with the invading martians and the……………)Lifexperience
Regrow,
You can only exempt a dwelling as your PPOR and only if you did actually live there even if only for a short period of time and you don’t want to exempt a house in Melbourne with your PPOR as you can only have one.
The catch here is the word dwelling. I assume you never got to build on it so it was just vacant land. If you had lived in a caravan on it and the caravan was still on it when you sold it then you could utilise the exemption.
Mention section 118-110 and 118-115 to your accountant. You are the one that signs the tax return to say it is correct. You will still cop a penalty from the ATO if it is wrong.Julia Hartman
[email protected]
http://www.bantacs.com.auHi Julie
We were planing on building a house as our PPOR but due to work we moved to VIC for training for 12mths and return to WA where we were to move closer to city where our work was to be. Since moving to VIC our job prospects have changed again.
We are renting in Melb. We are returning to WA in Jan where we recently purchased another block which we are building an IP on.
When is CGT payable? At tax time or when property is sold?
Should we ask our accountant to put it in writing as lifeX says? Is this sufficient if the ATO comes knocking?
Will mention section 118-110 and 118-115 to our accountant and see what he says.Thanks for your replies
Regrow
You are a fool for 5 seconds if you ask a question, but a fool for life if you don’t.
Rerow, You definately have to pay the 50% CGT as it was an example quoted in BRW sometime this year.
Regrow,
Tax is payable after you have done the tax return for the year you signed the agreement to sell.
Julia Hartman
[email protected]
http://www.bantacs.com.au
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