Hi everyone I’m new to this site. I need some advice on the subdivision of my parents property. My parents bought the 700 square block house in 1986 which had been there PPOR since June 2015. They have built a new house at the back (2014) and sub divided it. They are now currently leasing the front house and living at the back. They are both retired. Dad wants to sell one of the houses to me so he can reduce his and mums assets. We are not sure which house he should sell.
What would be the best strategy for him for now and future? To avoid CGT if there’s any.
Thanks in advanceThe newly-constructed dwelling may have GST applicable if sold. For this reason people often choose to live in the newly-constructed dwelling and sell the other one. Check with your accountant re GST and CGT implications in this regard.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I agree- sell the original house and live in the new one. Better Tax benefits. Seek your accountants advice to verify
#Planning Permit | AuArchitecture
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Since my dad is selling one of the properties to me, my accountant advised to sell the back house( new house) to me.
Dad sells me the back house at the cost of him building it (200k). Plus add the land value to it. Dad can keep on renting the front house out and sell it to my brother within 6yrs to avoid paying any CGT.
I can make the back house my PPOR till I decide to rent it out. I would be able to get more tax benefits eg ( depreciation )bc I’m still working. Dad is retired and on the pension.I want to ask for people’s opinion about my accountants strategy.
Thanks
Why can your Dad sell the front house in 6 years and avoid CGT? You said your oarents bought the property in 1986 after CGT was introduced and difn’t move into the front house until June 2015. Bear in mind that if your parents a on a oension or wanting to get one that gifts they make will affect their eligibility fir a pension.
Sorry, I meant my parents have been living in the old house till 2015. They are living in the new house built at the back now and renting out the old house.
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