Showing 4 ideas for tag "cgt"
(@iraspin) kudos icon +

What were they thinking

Partial main residence: sections 118-200

There is a defect in the way that the main residence exemption applies if a deceased person's legal personal representative (LPR) or beneficiary is taken to have acquired the deceased's main residence for market value at the date of death: item 3 in the table in subsection 128-15(4) of the ITAA 1997. The defect is that the rewritten partial main residence rules in section 118-200 of the ITAA 1997 fails to incorporate... more »
(@iraspin) kudos icon +

What were they thinking

Cost base of deceased main residence

There is a deficiency in the CGT main residence exemption relating to deceased estates which has a considerable impact on tax compliance costs.

The deficiency is that the market value cost base rule in item 3 in the table in subsection 128-15(4) of the ITAA 1997 does not literally apply where a deceased's dwelling was used to produce assessable income just prior to death, but this would not have affected an exemption... more »
(@iraspin) kudos icon +

What were they thinking

Partial main residence exemption: section 118-205

There is a defect in the way that the main residence exemption applies where ownership of a dwelling has passed through a number of deceased estates.
Some of the most complicated deceased estate cases occur where a dwelling passes through several persons each of whom dies before a sale is made. The complexity arises because if a partial exemption is being determined, then it may not be appropriate to consider the use... more »
(@darren) kudos icon +

Can government fix it

Market Valuations and Main Residence

Currently a market value rule applies when a former home is first rented after August 1996, to invoke as its cost base and deemed acquisition date, the market valuation at the date of first rental.

But many taxpayers first use a property as an investment, and then move into it as their home, and can never enjoy the maximum opportunity of the main residence exemption. For instance, if they add value to the property with... more »

Voting

3 votes
3 up votes
0 down votes