Do you need to pay capital gains tax when you subdivide your family home from one block into two or more blocks ?
Subdividing an original block into two or more blocks does not Arjen Robben Netherland Jersey , in and of itself, lead to a capital gains tax event. It is considered for capital gains tax purposes that the new blocks were acquired on the same date as the original block and that no disposal has occurred.
The original purchase price of the one block is then apportioned across the number of new blocks. This apportionment can occur on either an area basis , relative market value basis or any other reasonable method.
For example Bob and Jane purchased their family home on 20 August 2005 for $500,000 and then decided to subdivide the one block into two blocks. The original block was 800 sqm and the two new blocks will be 300sqm (Block One) and 500sqm (Block Two) in size. It would be reasonable for Bob and Jane to apportion $187 Wholesale Netherland Soccer Jerseys ,500 to Block One and $312,500 to Block Two. At the time of subdivision Bob and Jane will not have a capital gains tax liability.
What happens if Bob and Jane sell the subdivided block(s) ? There will be a capital gains tax event when Bob and Jane sell the family home and the subdivided blocks. So how does the ‘main residence exemption’ fit into all this.
If Bob and Jane sell the family home and the subdivided blocks at the same time then they will be able to apply the main residence exemption to the subdivided blocks to the extent which the adjacent land is used for private and domestic purposes in association with the dwelling. The maximum area of land that will be covered including the family home on it is 2 hectares.
However the main residence exemption does not apply in relation to the subdivided adjacent blocks if the blocks are sold seperately to the family home. The family home will be eligible for the main residence exemption but not the subdivided block. This also applies even if you sell the family home and the subdivided block at the same time but to different purchasers.
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These days, I find the lines are blurred between school and Real Life. Student life often means spending a cozy evening with your computer or heading to the boardroom for an on-site lesson.
Even traditional campus life has been redesigned for grown-ups. On September 5, 1999 Wholesale Netherland Jerseys , the New York Times Magazine carried a story about life in the New Dorms that look like yuppie condominiums, complete with carpeting and what the Times calls "adult-sized refrigerators."
Meanwhile, a lot of grown-ups who are old enough to remember typing their term papers are still living like students. Books, magazines and loose stacks of paper are strewn everywhere. A Real Student secretly misses bricks and boards Cheap Netherland Soccer Jerseys , although today they cost more than particle board shelves and are impossible to move.
When I lived in Alaska, I realized there was no point in buying Real Furniture. You could equip a ten-room house for the cost of shipping the contents of a studio apartment to the Lower 48.
I ended up buying a couch from a graduating student and adding an extra futon to the Bedroom Set. In my next job, I fully intended to do the same until a colleague observed, "Isn't there a time in your life when you stop buying used couches from students?"
A friend had a similar experience when she visited a Real Furniture Store seeking bookshelves. The salesperson showed her a nice unit for $450. Seeing that my friend was about to pass out Cheap Netherland Jerseys , the salesperson explained, "This is a piece of furniture that you will be proud to display in your home."
My friend left the store in a daze. Somehow, she explained later, she had never thought of bookshelves as furniture.
Still Wesley Sneijder Netherland Jersey , I see progress. A friend called to say he bought a house because he was tired of living like a student and was ready to grow up. He was forty-five at the time.
I myself have acquired some Real Furniture, including the Beautiful New Couch I bought twelve years ago. And I once had a grown-up lawn, thanks to my lawn service person, who was a student.
We will never succeed completely. My friend with the house just called to say that his two cats have shredded most of the trappings of his adult life.
I understand perfectly. My Beautiful New Couch has served as a place for me Virgil van Dijk Netherland Jersey , my house-sitters and my guests to take naps, and the dog has carried out extensive performance tests on each cushion.
I haven't been a student but the Beautiful New Couch has gone through a reverse graduation: it looks far more exhausted than its predecessor -- the couch I bought fifteen ago, from a student.
For serious advice about moving, download Making the Big Move.
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