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Granny Flat Arrangement - CGT implications?

Discussion in 'Accounting, Tax & Legal' started by Kim Ervin, 25th Jul, 2012.

  1. Kim Ervin

    Kim Ervin New Member

    25th Jul, 2012
    Sydney, NSW
    I was paying off a mortgage on a town house when I met my husband. I then bought a house with him, and let my parents move into my town house for life (as they didn't own a house and were nearing retirement). My dad gave me part of his super (30k) to help reduce the mortgage. They have lived in the house for 14 years. Later, I refinanced my house, and paid that mortgage off to make it easier to manage. I called up the tax office before I started the arrangement and was told that it was a granny flat arrangement and thought that meant that no CGT would be payable. I am now wondering though, what the CGT implications are for me when they eventually are living with me and the house is vacant. Have I been totally stupid?
  2. Terryw

    Terryw Well-Known Member

    9th Jun, 2006
    Yes, there would be CGT on the property because you are claiming, presumably, the house with your husband as your main residence. Assuming you purchase post 1985 too.