Tax stuff - place of residence
May 6th 2009, 4:16 am
#1
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Tax stuff - place of residence
The First Home Owner Grant Act 2000 says
Queensland Government Office of State Revenue website page Definition of terms—First home owner grant, provided as a general guide, says
Is the home they live in the same thing or different to the main residence referred to in ATO capital gains tax rules? Bearing in mind you do not actually need to currently live in the property for it to be your main residence for ATO purposes.
What I want to do is claim FHOG and actually live in the new house but nominate the old UK house as my main tax residence. I think they are different things - I would - but does anyone KNOW this for sure or otherwise.
Presumably this problem will only happen to expats (owners of homes elsewhere than in australia) as aussies can't be in the situation of having another australian home they want to use as a main residence and still qualify for FHOG.
An applicant for a first home owner grant must occupy the
home to which the application relates as the applicant’s
principal place of residence for a continuous period of at least
6 months.
The act does not define the term in boldhome to which the application relates as the applicant’s
principal place of residence for a continuous period of at least
6 months.
Queensland Government Office of State Revenue website page Definition of terms—First home owner grant, provided as a general guide, says
The principal place of residence of a person is the home they live in. A person can only have one principal place of residence.
Is the home they live in the same thing or different to the main residence referred to in ATO capital gains tax rules? Bearing in mind you do not actually need to currently live in the property for it to be your main residence for ATO purposes.
What I want to do is claim FHOG and actually live in the new house but nominate the old UK house as my main tax residence. I think they are different things - I would - but does anyone KNOW this for sure or otherwise.
Presumably this problem will only happen to expats (owners of homes elsewhere than in australia) as aussies can't be in the situation of having another australian home they want to use as a main residence and still qualify for FHOG.
May 6th 2009, 4:33 am
#2
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Re: Tax stuff - place of residence
The rules for the FHOG and CGT operate independently of each other.
In other words: As far as the FHOG is concerned, you must live in the house for a continous perod of at least six months. (As you wrote above.)
This does not stop you from making an election under the CGT rules to regard your UK house as the main residence under CGT rules (provided you meet all the conditions to make that election). Whether this is in your best interest is a different matter - you ought to get some tax advice on that.
In other words: As far as the FHOG is concerned, you must live in the house for a continous perod of at least six months. (As you wrote above.)
This does not stop you from making an election under the CGT rules to regard your UK house as the main residence under CGT rules (provided you meet all the conditions to make that election). Whether this is in your best interest is a different matter - you ought to get some tax advice on that.
May 6th 2009, 6:54 am
#3
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Re: Tax stuff - place of residence
just want to be sure we can have the choice - they way I read it we need to nominate in the year we dispose of one of the properties, not earlier, so we can see then which works out best.
I guess it depends which house goes up least (or goes down!!) in value.
can I ask if you know this from professional knowledge, personal experience or what you've read?
I guess it depends which house goes up least (or goes down!!) in value.
can I ask if you know this from professional knowledge, personal experience or what you've read?
