As a general rule, a dwelling is no longer your main residence once you stop living in it. However, in some cases you can choose to have a dwelling treated as your main residence for capital gains tax (CGT) purposes even though you no longer live in it.
Warning: You cannot make this choice for the period before dwelling first becomes your main residence. This choice needs to be made only for the income year that the CGT event happens to the dwelling – for example, the year that you enter into a contract to sell it. If you make this choice, you cannot treat any other dwelling as your main residence for that period (except for a limited time if you are changing main residences refer to issue 3). If you do not use it to produce income (for example, you leave it vacant, or use it as a holiday home) you can treat the dwelling as your main residence for an unlimited period after you cease living in it. If you use the dwelling to produce income (for example, you rent it out or it is available for rent) you can choose to treat it as your main residence for up to six years after you cease living in it. If you rent out the dwelling for more than six years, the ‘home first used to produce income’ (refer to issue 4) rule may apply, which means you are taken to have acquired the dwelling at its market value at the time you first used it to produce income. If you are absent more than once during the period you own the home, the six year maximum period that you can treat it as your main residence while you use it to produce income applies separately to each period of absence. Source: Treating a dwelling as your main residence after you move out
3 Comments
A residential contract requires the Seller to inform or provide the Buyer with a copy of document relating to disputes (if any) between the Seller and neighbouring property owners about dividing fences. These documents are:
a) notices to fence from a neighbour; b) applications to Queensland Civil and Administrative Tribunal (QCAT) for fencing; or c) QCAT orders for fencing affecting the property. In the contract: a) the Seller is required to warrant that there will be no unsatisfied fencing notices, applications or orders existing at settlement; and b) if there is an unsatisfied notice, order or application exists at settlement, the Buyer may be entitled to terminate the contract or claim compensation from the Seller. QCAT search result does not reveal the presence of any applications in relation to trees that have not yet resulted in an order. This application can only be discovered by a physical search of the QCAT register. We recommend the Buyer instruct their respective solicitor to have a search agent conduct this search. The Seller must promptly give the Buyer a copy of any notice, proceeding or order, received after the contract date. The Seller must not give any notice, seek or consent to any order or agreement without the Buyer’s prior written consent after the contract date. |
Archives
August 2020
Categories
All
|