Granny Flat Arrangement - CGT implications?

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

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  1. Kim Ervin

    Kim Ervin New Member

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    1st Jul, 2015
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    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. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    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.