selling before settlement



From: H T


I bought a little apartment off the plan in stkilda 18 months ago with the intention of moving into it, ie my primary residence. Since then my circumstances have changed and i wish to sell before settlement in 3 monthsish. The problem is this flat has gone up maybe 20% on purchase price so how to i convince the taxman that the property i purchased i intended to live in without the proof - like a owner-occ loan, gas bills etc. to avoid cgt. I have since brought an ip that was always going to be an ip. Should i get a private ruling or is that asking for trouble...
ps.the contract of sale allows me to onsell before completion
pss i moved in with my girlfriend

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Reply: 1
From: Robert Longmore

is the unit a full payment on settlement type agreement?
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Reply: 2
From: H T

yep, its a full payment on settlement
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Reply: 2.1
From: Robert Longmore

sorry i couldnt answer your question, but i am curious on buying off the plan and reselling before settlement, or flipping i guess. Do you have to make any payments untill completion or is there an initial payment at the start of work or signing of contracts?

im not sure about yor question as i plan on investing in property through my company, and with the aid of my very good accountant, can minimise tax using the company rules etc. i am only a beginner in this game :) but i am interested in making profits from reselling off the plan type properties before settlement if it is possable.
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Reply: 2.1.1
From: Dave :)


I buy off the plan, but have not yet sold any of my properties. There are no progress payments to be made; just the initial 10% or 5% deposit, or deposit bond to that effect - whatever you negotiate. The balance is payable upon settlement/14 days after issue of certificate of occupancy. All the contracts I sign are on the condition that I reserve the right to on-sell prior to settlement. However, this does not remove me from being solely responsible for settlement. If I were to find a buyer, I'd need to be sure I qualified this buyer and was sure their finances checked out....otherwise I'd have to settle myself.

Have you found a buyer for your apartment yet?


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From: H T

have i found a buyer yet,mmm, i guess with this market i expect a hundred woodducks to line up to sign on the line, as the demand is pretty substantial at present.
I was going to use an agent and advertise it the usual way - for, but my real question is how can it be proved that i intended to live in it as my primary residence, cause i guess thats my responsibility to the ATO
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From: Paul Zagoridis

Talk to your accountant immediately.

I'm not sure how you intend to utilise the primary residence concession. I invest through a trust/company structure so it doesn't apply to me.

But I thought
1) owner occupiers got concessions under the old tax system (by specifying a primary residence whether they lived there or not).

2) under the new tax system you get CGT discounts only after holding the property for 12 months, which you haven't.


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