Hi All
I had a phone call from a friend this morning and I don't know the answer, perhaps someone here does?
In 2001 she purchased a property for $145K, sold it last year for $375K. During this period she rented this out and as her income was below xxx she did not lodge tax returns. She then moved to her friend's house (rent free) as he is overseas 11 months of the year, comes back for 1 month holiday. Has been in this house for over 20 years.
She does not work, currently she is a student.
When she sold her property she was under the impression that as she only owns 1 property, this is considered her primary residence even if she did not reside in this property she would be CGT exempt.??
ATO have explained that she currently owes approximately $30K, and that she must provide proof that she lived in the property.
She is now going on a tangent, and thinks that if you can prove she lived her property (sold property) for the 1 month, she may be able to get out of paying CGT.
I would be interested in what her tax rate would be if she is a student/unemployed?
Personally I can not see her getting out of this, and she does not have the funds to pay this tax bill?
Can anyone enlighten me on this, as I have no clue.
Thanks for help
Cheers
MTR
I had a phone call from a friend this morning and I don't know the answer, perhaps someone here does?
In 2001 she purchased a property for $145K, sold it last year for $375K. During this period she rented this out and as her income was below xxx she did not lodge tax returns. She then moved to her friend's house (rent free) as he is overseas 11 months of the year, comes back for 1 month holiday. Has been in this house for over 20 years.
She does not work, currently she is a student.
When she sold her property she was under the impression that as she only owns 1 property, this is considered her primary residence even if she did not reside in this property she would be CGT exempt.??
ATO have explained that she currently owes approximately $30K, and that she must provide proof that she lived in the property.
She is now going on a tangent, and thinks that if you can prove she lived her property (sold property) for the 1 month, she may be able to get out of paying CGT.
I would be interested in what her tax rate would be if she is a student/unemployed?
Personally I can not see her getting out of this, and she does not have the funds to pay this tax bill?
Can anyone enlighten me on this, as I have no clue.
Thanks for help
Cheers
MTR