If I purchased a property overseas (and have never owned another property at any time, anywhere else in the world) and left it vacant until a few years later when I was able to establish it as my main residence by moving overseas and living there for a few years, would it still be subject to CGT...
I have a feeling intention will play a big part. Was your intention to make profit or for a private or domestic purpose or both?
Expenses incurred in the pursuit of rental income will be an allowable deduction to the extent to which they are losses or outgoings of capital, or of a capital...
Repairs vs improvement is a subjective area of tax so not all accountants will interpret and apply the rules the same way. Ask them both why they made that decision and see which argument you agree with.
If every accountant worked like you, where would Jenny get relevant work experience? It's in the best interests for the profession and the community for firms to operate like that so that the next generation of accountants can get an opportunity to develop. Otherwise there will be a skills...
That's exactly right. My guess is they're trying to keep some foreign income/investment off the ATO's radar. Either that or they've been grossly misled.
As for the market valuation, I think an appraisal by a real estate agent will suffice but I'd like to get a second opinion on that.
Yes, that's a possible scenario. The 183 day test is one of the tests to determine residency, but passing or not passing this test alone (or any other) isn't enough to establish residency for tax purposes. You look at all the facts and then see which argument is stronger.
Makes more sense when you argue that it's sort of a CGT relief for certain taxpayers.
Just thinking out loud and playing devil's advocate here. Is the 'relief' necessary if those taxpayers have the choice of not renting out their homes for additional income? They'll still remain CGT exempt...
I see it as 3 different issues.
1. Residency
Residency for tax purposes is a grey area of tax. The following link are the tests you should use to determine your residency for tax purposes...
Hi everyone. This is my first post but I'm hoping to contribute more in the future.
Anyway I was hoping some tax professionals could help me with my question. Why is the main residence exemption only available if you move out completely?
e.g.
Scenario 1
If I bought a house...