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From: Mike .
Reducing Capital Gain Liability - more info
From: Michael
Date: 11 Dec 2000
Time: 01:48:50
Peoples,
I'm about to sell an IP (neg geared) to buy positively geared properties. But before I do I'm trying to work out how I could reduce my CGT liability.
I've never had a principal place of residence (always rented) so I'm wondering how I can define this property as such.
Here's the extract from the ATO's "Guide to Capital Gains Tax 1999-2000"...
"Is the dwelling your main residence?
Factors that may be relevant in determining whether a dwelling is your main residence include:
- the length of time you lived there - the capital gains tax legislation does not specify a minimum time that a person has to live in a home before it is considered to be their main residence; what is important is that it is your main residence - where your family lives - whether you have moved your personal belongings into the home - the address to which your mail is delivered - your address on the electoral roll - connection of services - for example, telephone, gas or electricity - your intention in occupying the dwelling
A mere intention to construct a dwelling, or to occupy a dwelling as your main residence, without actually doing so, is not sufficient to obtain the exemption. In certain circumstances you may elect to treat a dwelling as your main residence even though you have ceased to occupy it."
So guys... any ideas? (by the way, the property was purchased 3yrs ago)
Michael
Reducing Capital Gain Liability - more info
From: Michael
Date: 11 Dec 2000
Time: 01:48:50
Peoples,
I'm about to sell an IP (neg geared) to buy positively geared properties. But before I do I'm trying to work out how I could reduce my CGT liability.
I've never had a principal place of residence (always rented) so I'm wondering how I can define this property as such.
Here's the extract from the ATO's "Guide to Capital Gains Tax 1999-2000"...
"Is the dwelling your main residence?
Factors that may be relevant in determining whether a dwelling is your main residence include:
- the length of time you lived there - the capital gains tax legislation does not specify a minimum time that a person has to live in a home before it is considered to be their main residence; what is important is that it is your main residence - where your family lives - whether you have moved your personal belongings into the home - the address to which your mail is delivered - your address on the electoral roll - connection of services - for example, telephone, gas or electricity - your intention in occupying the dwelling
A mere intention to construct a dwelling, or to occupy a dwelling as your main residence, without actually doing so, is not sufficient to obtain the exemption. In certain circumstances you may elect to treat a dwelling as your main residence even though you have ceased to occupy it."
So guys... any ideas? (by the way, the property was purchased 3yrs ago)
Michael
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