Long time since my last post, great to see the form still so active.
A friend of mine has been running a business from his home for many years. He has a shed in his back garden which has been converted into a small office and that's the sole office for the business.
He's been very careful not to claim a single occupancy cost, including any costs that wouldn't need apportionment, such as the dedicated telephone number for the business.
So he's relying on the complete lack of deductions to maintain his PPOR exemption.
My concern, when I was considering his situation, is that when you look at a whole host of facts, it is abundantly clear that the business has been run from his house, so does that impact the exemption, irrespective of whether you've actually claimed any costs?
He's held this house for 30 years and he's sitting on a capital gain of over $1m, so rather serious for him, although in terms of floor space the office would literally make up only perhaps 3% of the overall floor space, so on an apportionment of gain it wouldn't be disastrous.
Any cases or references would be appreciated.
Cheers
Jonathon
A friend of mine has been running a business from his home for many years. He has a shed in his back garden which has been converted into a small office and that's the sole office for the business.
He's been very careful not to claim a single occupancy cost, including any costs that wouldn't need apportionment, such as the dedicated telephone number for the business.
So he's relying on the complete lack of deductions to maintain his PPOR exemption.
My concern, when I was considering his situation, is that when you look at a whole host of facts, it is abundantly clear that the business has been run from his house, so does that impact the exemption, irrespective of whether you've actually claimed any costs?
He's held this house for 30 years and he's sitting on a capital gain of over $1m, so rather serious for him, although in terms of floor space the office would literally make up only perhaps 3% of the overall floor space, so on an apportionment of gain it wouldn't be disastrous.
Any cases or references would be appreciated.
Cheers
Jonathon