Hi everyone
Other than CGT implications, are there any other tax implications that arise when the property is sold??
Also, would I be right in saying that if you never sell the property (or properties) and you access the capital appreciation in this way a number of times over a number of years, then there are no tax implications........ever??
eg. say you own a property for 15 years. At year 5 you distribute an unrealised capital gain (UCG) of $50000. At year 10 you distribute another UCG of $30000, and at year 15 you again distribute a third UCG of $60000. Providing the UCG's are distributed in the manner described above, if you never sell the property you are never taxed on any of the $140000 distributed as UCG?? Or can you only do it once??
Lastly, say in the above scenario, you sold the property at year 20, what would be the tax implications of that??
Thanks
Paul
PS. Is the above a very realistic scenario??