cgt

Expanding the empire (and retaining the CGT main residence exemption)

A question that surfaces now and then from clients in regard to capital gains is whether the main residence exemption extends to additional land acquired after the time of acquisition of the residence. The short answer is yes — provided that certain requirements are met (which in the main pertain to subsections 118-120 and 118-165

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The CGT implications of subdividing and building on the family property

Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential property owner seeks to demolish and subdivide the block containing the family home and build residential units. CGT implications of subdividing and building on the family property. If a taxpayer has the available land of course,

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Profit-making “intention” of asset ownership can influence tax outcome

A profit that arises from the carrying out of a profit-making undertaking or plan (that is, one with a profit-making intention) will be assessable as statutory income under s15-15 of the ITAA97 where the proceeds of the profit-making undertaking or plan are not otherwise assessable as ordinary income under s6-5 ITAA97. Profit-making “intention” of asset

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Land owned before CGT, but can a recent house built on it be CGT-free?

Naturally, a taxpayer will assume that when they build a house, that building will not qualify for CGT exemption until it becomes that taxpayer’s “main residence”. There is however a section of the regulations that allows that taxpayer to extend the period of the main residence exemption so that this is initiated during the period

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The transitional CGT relief measure and your SMSF

Transitional CGT relief is temporary relief available to all super funds, not just SMSFs, for certain CGT assets that would otherwise lose the tax exemption through the necessary efforts to comply with the new transfer balance cap and new conditions to be applied to transition to retirement income streams (TRIS). Upon the introduction of the

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