Browse Forums Real Estate 1 May 03, 2010 11:46 pm Hi, I am sure many people have asked about this before But our plans are to build and live in it for 6 months coz of FHOG and sell and build again. But we have been told that we need to live in for at least 12 months as we wont be having people renting off of us for us NOT to pay Capital Gains Tax... is this correct? Re: Building and selling Capital Gains 2May 04, 2010 1:43 pm i dont really understand the question... but if you live in the house for six months, and that is your primary residence for six months then you will not pay CGT CGT is not applicible on your primary residence, if you rent out the place that is a different story, but there are ways around that as well Re: Building and selling Capital Gains 3May 04, 2010 5:00 pm Someone said that we had to live in the house for at least 12 months even if we didnt rent it out for us not to pay CGT Re: Building and selling Capital Gains 4May 05, 2010 7:08 am jessie, don't rely on what "someone" said. Go to the ATO's website and read the info on capital gains on property. If you can't find the answer to your questions, ring them and have a hypothetical chat. They don't bite. Rental properties: http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/002/010/005 Capital gains tax: http://www.ato.gov.au/corporate/pathway.asp?pc=001/001/038 Re: Building and selling Capital Gains 5May 06, 2010 1:11 am Yeh I know and I definitely wouldnt. We are thinking about it but we have plenty of time. It did say something about 12 months but I want to ask coz we have had the land longer. I have tried to call a few times but something went wrong with payments so people are ring them. I shall try again today Thanks Re: Building and selling Capital Gains 6May 06, 2010 7:35 am There's no minimum time, but you do have to move in "as soon as practicable". Renovating before moving in is fine, but renting the property first, then moving in is a no-no. There have been a few cases recently where people have bought a house, been unable to move in due to a work posting, so rented it out. Then they've moved in at a later date, considering that "as soon as practicable". The law sees it a different way.... those people have been assessed for capital gains tax. The decisions have been upheld on appeal too. This is just one case: http://www.smh.com.au/news/business/money/property/practicable-is-what-ato-preaches/2010/05/04/1272738528347.html The important thing is that you're actually living there. Change your address on the electoral roll, and for important things like car registration and bank accounts. Move your stuff in, have phone etc connected, and you have proof that you were in fact living there. If you sell after three months because you hate the place (or whatever), it was still your principle place of residence; i.e. you weren't living anywhere else. It's important to get it right first up to avoid any nasty surprises, so definitely check with the ATO. Yes, the lines will be clogged at the moment, thanks to the computer system debacle and large numbers of people waiting for refunds ...but keep trying. Re: Building and selling Capital Gains 7May 06, 2010 8:05 am jessie87 Someone said that we had to live in the house for at least 12 months even if we didnt rent it out for us not to pay CGT Yes, I heard that also. It must be your primary residence for atleast 12 months Built the Eden Brae Cambridge 34 Family with Boston Corner Facade Re: Building and selling Capital Gains 8May 06, 2010 7:03 pm Definitely not 12 months, or any specific time. I have inside info... From the ATO's website: Quote: Selling your home You can generally claim the main residence exemption to ignore a capital gain or capital loss from a CGT event that happens to your home. To get the exemption, the property must have a dwelling on it and you must have lived in the dwelling. If your property is a vacant block of land, you are not entitled to the exemption. Generally, a dwelling is considered to be your main residence if: - you and your family live in it - your personal belongings are in it - it is the address your mail is delivered to - it is your address on the electoral roll, and - services are connected (for example, telephone, gas or electricity). The main residence exemption is not based on one factor alone, and the weight given to each factor may vary depending on individual circumstances. Other factors, such as the length of time you stay there and your intention in occupying it, may also be relevant. http://www.ato.gov.au/corporate/content.asp?doc=/content/00208572.htm&page=16#P423_41144 Re: Building and selling Capital Gains 9May 06, 2010 11:49 pm Thanks heaps for that You have been very helpful. You should be able to encase the sewer but you will need it designed and approved and access to lot 580 to do the work 2 17163 I want to build a decking to the drawn shape outlined in black. The problem is how close can I build to the gas hot water unit? Will I be able to build around it and be… 0 20230 custom probably not. Volume, most defiantly, but spec would vary. If youre doing a knock down, there additional costs associated with that that will eat into your budget… 1 10275 |