I cannot rent out my first home after 6 month bought it ?

[snowwhite]

Guys,I am having a problem!
When I bought the house ,my husband changed job,so I had to let the house empty for 6 month,as we applied FHOG ,and we didnot pay any tax as the house is under 500K. Now it's year year later ,we thought we could rent it out now,so I signed contract with the angency company ,they already found the tenant,about to move in next week .
So I called OSR today ,ask if it's ok to rent out after 6 months ,they told me that I cannot rent out for 1 year! otherwise I have to pay the tax consession back !
Does anyone know that how much tax I should pay to ATO ?
Is it half of what I should pay if this house was for Investment from the bagining ?
Thanks a lot

 

[jaycee]

Guys,I am having a problem!
When I bought the house ,my husband changed job,so I had to let the house empty for 6 month,as we applied FHOG ,and we didnot pay any tax as the house is under 500K. Now it's year year later ,we thought we could rent it out now,so I signed contract with the angency company ,they already found the tenant,about to move in next week .
So I called OSR today ,ask if it's ok to rent out after 6 months ,they told me that I cannot rent out for 1 year! otherwise I have to pay the tax consession back !
Does anyone know that how much tax I should pay to ATO ?
Is it half of what I should pay if this house was for Investment from the bagining ?
Thanks a lot

Os was it wrong to think that you could rent it uot after 6 mths of pruchase, is that wha tthe OSR guy was trying to say or is he trying to say you have to live in it yourself for 6mths, and seeing as 6 mths has passed alrady wihtou you living there already, another 6mths equals the 12months ?

 

[porp_e]

You need to live in the house for 6 months *within* 12 months of purchasing it if you rent it out before you live in it then it is seen as an investment and you have to pay the full stamp duty and fhog back.

 

[porp_e]

You need to live in the house for 6 months *within* 12 months of purchasing it if you rent it out before you live in it then it is seen as an investment and you have to pay the full stamp duty and fhog back.

edit actually i think in some states it is 1yr that you have to live there....have you checked the requirement for your state?

 

[snowwhite]

6 months is just enough for the requrement of getting FHOG,but not enough for the tax consession,that what they told me .
I have to living in for 1 year at least ,before I can rent out or sell,because when I bought I didnot pay any tax,as I was a first home buyer ,but I cannot rent it out in one year,what a stupid policy ,as I am no longer living in QLD anymore .

 

[jaycee]

6 months is just enough for the requrement of getting FHOG,but not enough for the tax consession,that what they told me .
I have to living in for 1 year at least ,before I can rent out or sell,because when I bought I didnot pay any tax,as I was a first home buyer ,but I cannot rent it out in one year,what a stupid policy ,as I am no longer living in QLD anymore .

The house was empty for 6 months right

Is that another way of saying it was not rented for 6 months ?

Like I stayed at my girlfriend's house instead of at my house for 6 mnths and left my huse empty ?

Even if the answer is yes, I suppose that does not sole your whole problem as you need to stay there another 6 months I guess..

 

[marg4000]

The concessions were given to you on the undertaking you signed that this would be your PPOR. As you say the home was vacant for 6 months, you may have to pay back the FHOG - it is a condition that you LIVE in the home for at least 6 months.

To qualify for PPOR reduced stamp duty you will have to actually LIVE in the home for 12 months.

Otherwise you will have to pay the same stamp duty as an investor.
Marg

 

[porp_e]

To qualify for PPOR reduced stamp duty you will have to actually LIVE in the home for 12 months.

Not in all states...WA is only 6 months for both concession and FHOG.

Snowwhite you can check the rules for your state here: http://www.firsthome.gov.au/ good to find out what they actually are before making decisions then complaining osr is unfair

 

[Perp]

snowwhite, reading back on some of your previous posts, I'm not feeling sympathetic.

You explicitly state in this thread of 5th August 2010, which I can only assume relates to the property in question:

Buying my first property as investment ,do I pay stamp duty ?
Me and my husband are looking for buy our first house in QLD,but now my husband is working in WA,so we could not live in the house we are going to buy .and we plan to buy this house for 450K,do we need pay stamp duty for it ？ we donot own any property this moment .

Thus you always intended for this property to be an investment, and knew prior to settlement that you wouldn't be living in it. On this basis, you weren't entitled to either the stamp duty concession, or the FHOG.

As you've attempted to defraud your fellow taxpayers, I hope that you have to repay both, with penalties.

 

[wylie]

6 months is just enough for the requrement of getting FHOG,but not enough for the tax consession,that what they told me .
I have to living in for 1 year at least ,before I can rent out or sell,because when I bought I didnot pay any tax,as I was a first home buyer ,but I cannot rent it out in one year,what a stupid policy ,as I am no longer living in QLD anymore .

Why is is a "stupid" policy. They are trying to stop people rorting the system.

They give concessions and it is all very clear if you bother to check. If you don't fit the criteria, and if you don't follow the rules that are clearly spelt out, you don't get the concession.

 

[Property Meister]

snowwhite, reading back on some of your previous posts, I'm not feeling sympathetic.

You explicitly state in this thread of 5th August 2010, which I can only assume relates to the property in question:



Thus you always intended for this property to be an investment, and knew prior to settlement that you wouldn't be living in it. On this basis, you weren't entitled to either the stamp duty concession, or the FHOG.

As you've attempted to defraud your fellow taxpayers, I hope that you have to repay both, with penalties.

I dont think its wrong to plan to live in it for 6 months to keep the FHOG and then rent it out and turn it into an IP. I have known many people do this or at least intend to do it, they have abided by the law and have made arrangements to be legally safe....

I don't think snowhite was deliberately intending to do any of this, even if she does have to pay it back.

 

[Perp]

I have known many people do this or at least intend to do it, they have abided by the law and have made arrangements to be legally safe....

If you intend to do it, you're not abiding by the law. The intention of the FHOG is for people to buy a home. Yes, some people try to bend the rules, but that doesn't mean that it's legal, and it's certainly not ethical.

From OSR QLD webpage:

"Even if you meet the eligibility criteria, some circumstances may stop you from getting the grant. These are known as ‘disqualifying arrangements’.

Disqualifying arrangements can include:
...
entering into an arrangement for the main purpose of getting the grant, rather than to get a home."

I don't think snowhite was deliberately intending to do any of this, even if she does have to pay it back.

What makes you think that?

 

[wylie]

It doesn't matter what someone's intensions are, but it does matter what they actually do.

My son got the transfer (stamp duty) concession and must live in his unit for twelve months. His FHOG requirement is that he live in the unit for six months, and must move in within twelve months of purchase.

He was able to claim the duty concession as long as he didn't agree to any new lease or any extension of the existing lease (which OSR interpreted as a "new lease").

He had to move in as soon as the current lease finished. No extensions.

At one stage, we couldn't get confirmation that the tenants had been given the notice that they must vacate the house at the end of their lease, which was two weeks after settlement. I called OSR and explained our concern - that if the tenants don't leave at the end of the lease and my son becomes the owner and gives them notice to leave, he would have to wait for that notice period to expire before he could move in. I asked if there would be a problem that his moving in might be postponed, through no fault of his own, by a couple of weeks.

The answer was that there was NO EXCEPTIONS. They would look on this scenario as my son extending the current lease, and he would be asked to pay the duty of $8K.

And I believe these things ARE checked up on.

 

[Ed Barton]

I dont think its wrong to plan to live in it for 6 months to keep the FHOG and then rent it out and turn it into an IP. I have known many people do this or at least intend to do it, they have abided by the law and have made arrangements to be legally safe....

I don't think snowhite was deliberately intending to do any of this, even if she does have to pay it back.

reread perps post of what snow white said. she said she is LOOKING to buy but will not be able to live there (in brisbane) because her husband has got work in another state.

her intention was always to break the rules.

 

[Pretty]

You can't stop people to bend the rule, as the rule is there for people to bend. Unless change rule from 6 month living to 5 years??

 

[Perp]

You can't stop people to bend the rule, as the rule is there for people to bend. Unless change rule from 6 month living to 5 years??

Yes, it's completely unreasonable to expect people to behave with integrity.

 

[jaycee]

Am I reading the same thing as you guys ?

I read - I bought a house. MY husnband changed jobs, so I didn't get to live in it, we moved. I thought it was OK to rent it out after this time, but now I found out I have to pay tax etc ? Is that right ? How much would it be ?

Didn't sound THAT bad to me (?)

 

[Perp]

Didn't sound THAT bad to me (?)

snowwhite's actions weren't that bad, or having to pay it back isn't that big a deal?

 

[jaycee]

Her actions.

All I read was an outline of her situation, what she thought was her new found understanding that she can't do what she had organised to do without paying tax, and asking if it was right and how much tax she might have to pay.

Anyway...

 

[Perp]

Her actions.

All I read was an outline of her situation, what she thought was her new found understanding that she can't do what she had organised to do without paying tax, and asking if it was right and how much tax she might have to pay.

Um, no, she presented it that way, but looking back on her posts, she knew they wouldn't be living in the property prior to purchase, but nonetheless lodged a fraudulent claim for the FHOG and stamp duty concessions knowing that she wasn't entitled to them.

That's a bit different.