CGT & Property
Online Workshop

The fundamental issues that need to be addressed when clients are involved in property transactions. Just because these issues are fundamental, doesn’t necessarily mean that they are easy to work through in practice.

We walk through:

• Confirming whether property transactions will be dealt with on capital or revenue account, we look at the ATO's latest guidance in this area
• The CGT events that are most relevant to property transactions and how to identify the most specific event
• When the market value substitution rules do and don’t apply
• Dealing with option arrangements
• How to determine when a capital gain or loss should be reported to the ATO and dealing with delays between contract date and settlement date
• Cost base calculations and the adjustments that need to be considered
• Dealing with subdivided property
• The process for dealing with the sale of rental properties
• Managing instalment arrangements
• Understanding the look-through rules for earnout arrangements

with Michael Carruthers

In this session we look at the application of the small business CGT concessions and other CGT concessions to property transactions. The CGT outcome can depend on who owns the property, how it has been used and what triggers the CGT event.

We explore:

• Determining whether a property is an active asset
• Dealing with mixed use properties
• Options for extracting tax-free gains from a company or trust after applying the small business CGT concessions
• The special rules that apply to spouses and how this can make the difference between accessing the concessions and missing out
• How different share classes can make life difficult and what can be done about it
• The conditions that must be met to qualify for the small business restructure rollover relief
• Applying the ultimate ownership rules to situations involving discretionary trusts
• Concessions that can apply to properties that have been compulsorily acquired or destroyed

with Michael Carruthers

We look specifically at the CGT discount and main residence exemption in this session. While applying these concessions can sometimes be a straightforward exercise, the position can become very complex very quickly.

We look at:

• Situations when clients might miss out on the CGT discount and when clients might choose not to apply the discount
• Applying the CGT discount and main residence exemption to properties located overseas
• Determining the impact that a client’s residency status can have on the CGT outcome
• Common situations which prevent clients from accessing a full exemption under the main residence rules
• How to apply the 6 month overlap rule and 6 year absence rule
• The impact of using a property to earn income, including for short term rental purposes
• How to work through the rules dealing with dwellings that are being constructed or renovated
• When clients are treated as if they have reacquired their property for CGT purposes and the impact that this has on tax calculations
• Working through the special rules that apply to inherited properties

with Rae Ni Corraidh