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I jointly own an appartment in Brisbane with my x-wife for

last 12 years. We lived...
I jointly own an appartment in Brisbane with my x-wife for last 12 years. We lived in the property for one year about 10 years ago. We devorced 3 years ago. Now she wants to either buy my half from me or sell her half to me. We lived overseas for last 10 years.

From tax point of view, what is more advantageous? I have arrived back in Australia 1 year ago and intend to stay living in Australia but I am not planning to buy a property immediately. Would it be better for me to buy her half to avoid paying tax? I do not plan to live in Brisbane again. My preference is to sell since I do not want to manage it my self at the moment, but I don't want to pay extra taxes un-necessarily and loose a lot of money that way because i am planning to buy a property in a year or two.

Thanks
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Answered in 11 hours by:
6/15/2013
Rachel-Mod
Rachel-Mod, Moderator
Category: Tax
Satisfied Customers: 5
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Hello,

I'm Rachel, and I’m a moderator for this topic.

We have been working with the professionals to try to help you with your question. Sometimes it may take a bit of time to find the right fit.

I was checking to see if you had already found your answer or if you still needing assistance from one of the professionals.

Please let me know if you wish to continue waiting or if you would like for us to close your question.

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Customer reply replied 4 years ago

Hi and thank you for responding. I will wait. I was hoping to get a response before Monday.


 


The question is regarding tax advice in Australia.

Hello,

Thank you, XXXXX XXXXX continue to look for a professional to assist you. Please let me know if I can be of any further assistance while you wait.

Best,

Rachel

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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,454
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Welcome and thank you for giving me the opportunity to assist you with your tax question.

Capital gains tax (CGT) is the tax you pay on a capital gain. It is not a separate tax, just part of your income tax. The most common way you make a capital gain (or capital loss) is by selling assets such as real estate, shares or managed fund investments. However, most real estate is subject to CGT. This includes vacant
land, business premises, rental properties, holiday houses and hobby farms.
Your 'main residence' (family home) is exempt from CGT unless you rented it out
for a time or it's on more than 2 hectares of land.

A number of assets are exempt from CGT, including your home, car, and depreciating assets used solely for taxable purposes. If CGT applies, you may be able to discount your capital gain by 50%. There are a number of other exemptions, rollovers and concessions.


Additionally, as a general rule, capital gains tax (CGT) applies to all changes
of ownership of assets on or after September 20, 1985. However, if you transfer
an asset to your spouse as a result of the breakdown of your marriage or
relationship, there is automatic rollover in certain cases.

This rollover ensures the transferor spouse disregards XXXXX XXXXX gain or capital loss that would otherwise arise. In effect, the one who receives the asset (the transferee spouse) will make the capital gain or capital loss when they subsequently dispose of the asset. If you are the transferee spouse, the cost base of the asset is transferred to you.

 

This applies to you if your marriage or relationship ended on or
after September 20, 1985, and

 

you transfer an asset or a share of an asset to your spouse

 

you receive an asset or a share of an asset from your spouse, or

 

a company or trustee of a trust
transfers an asset to you or your spouse.


You cannot choose whether or not it applies.


My point of reference for my answer is the following http://www.ato.gov.au/businesses/pathway.aspx?pc=001/001/038. This website contains a wealth of information that will assist you to make a decision.

 

Thank you and best regards.



Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,454
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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Just a short note to thank you for the positive rating. If you have any questions in the future, please feel free to put "for bkb1956" in the subject line, and I will be happy to assist you. Thank you again, and best regards.
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