i lived in my home for 7 yrs and now renting because job is on other side of town. the renters are my friends so only an agreement is made on the agreemtn template. they pay cash and no record of payment. now if i sell the house to someone do i need to declare to ato that it is cgt exempt because i lived for 7 yrs and so on? do i even care to tell them that it is rented? how they find what is rented and what is not rented?
Change PPOR to IP
- Thread starter Avatar1234
- Start date
No
i have never declared in Tax returns or ever claimed tax deduction at all.
i have never declared in Tax returns or ever claimed tax deduction at all.
You will be cgt exempt (possibly) not by virtue of the fact of having lived there for 7 years but because it was a PPOR that you sold within 6 years of moving out, and turning it into an IP.
Aren't you going to claim some depreciation or other maintenance & running costs - rates, insurances, repairs etc?
They read this forum and can track you down if they want by using your IP address.
No
i did not claim deductions or any maintenance because i knew that it will be nothing to very less that comes back after all the +ve gearing that i have for living 7 yrs. if ip address is the only way to track then i rest peacefully.
i did not claim deductions or any maintenance because i knew that it will be nothing to very less that comes back after all the +ve gearing that i have for living 7 yrs. if ip address is the only way to track then i rest peacefully.
What makes you think not declaring income is legal?
Ta
Relax i haven't done it yet just asking. After all what makes govt think we have to pay insurance per vehicle and not per driver.!! if you keep thinking sky is the limit.
Relax i haven't done it yet just asking. After all what makes govt think we have to pay insurance per vehicle and not per driver.!! if you keep thinking sky is the limit.
If you have moved from your former PPOR and its now rented then the income is assessable and you may be able to claim deductions.
If the home was your main residence and you are now renting across town then the 6 year absence rule would allow you to rent that property for UP TO 6 years and if its sold within that period then no CGT issues arise.
This assumes you always lived in the property after it was acquired.
If you sell after 6 years then the CGT would be worked out using a pro-rata basis based upon the market value at the date you first earned rent and the final selling price less costs etc. ie if sold after 7 years then 1/7th would be taxable. After 8 years 2/8th and so on.
Most anonymous tips to the tax office are former tenants who fall out with the owner and report you for tax evasion. Its not unusual for best friends to become best enemies. Evasion is so easily proven too. Then it may become a criminal offence.
Not quite sure how car insurance came into it. The Commonwealth Govt has no laws requiring any owner to pay any car insurance. State Govt ?
If the home was your main residence and you are now renting across town then the 6 year absence rule would allow you to rent that property for UP TO 6 years and if its sold within that period then no CGT issues arise.
This assumes you always lived in the property after it was acquired.
If you sell after 6 years then the CGT would be worked out using a pro-rata basis based upon the market value at the date you first earned rent and the final selling price less costs etc. ie if sold after 7 years then 1/7th would be taxable. After 8 years 2/8th and so on.
Most anonymous tips to the tax office are former tenants who fall out with the owner and report you for tax evasion. Its not unusual for best friends to become best enemies. Evasion is so easily proven too. Then it may become a criminal offence.
Not quite sure how car insurance came into it. The Commonwealth Govt has no laws requiring any owner to pay any car insurance. State Govt ?
Ta
Insurance is just my issue with the govt. yes i do agree that friends can turn into enemies when money owed to one another. I think i can use the 6 year rule at best.
Insurance is just my issue with the govt. yes i do agree that friends can turn into enemies when money owed to one another. I think i can use the 6 year rule at best.
