2020

Property Online Series - Part 7: Revenue v Capital - What happens when the intended use of property changes?

Source: National

Published Date: 2 Nov 2020

 
Real estate has traditionally been an accessible and versatile investment for SME's and high net worth individuals. The onset of uncertain economic times driven through the Global Pandemic has meant that investors and developers may have to rethink their property holdings, and transactions undertaken now may differ from the original intended use. Given the volume of information now available to the ATO and the increased focus on property transactions, it is more likely that tax positions taken will attract their attention and require explanation.

Practitioners and advisors are often asked to advise taxpayers on the taxation implications arising from a change in the intended use of their property over the ownership period. This session explored both the direct and indirect tax consequences arising from the change of intention, including:

  • income tax consequences arising from a change of purpose: starting and ceasing to hold property as trading stock
  • CGT outcomes when the intended use changes
  • GST consequences, adjustments
  • have you commenced an enterprise and from when?

Details

  • Published On:2 Nov 2020
  • Took place at:Online

The material is copyright. Apart any fair dealing for the purpose of private study,

research critisism or review, as permitted under the copyright Act, no part may be rerpoduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

This material is copyright. Apart from any fair dealing for the purpose of private study., research, critisism or review, as permitted under teh copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opininons are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

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