A rising occurrence in the property market has been dual occupancy. The rarity and cost of land has meant that would-be owners and developers are developing their lots into multiple dwellings on a single lot of land.
This leads to the obvious complexity involved with property ownership and development, amplified by the additional complexities involved in recognising each dwelling for tax purposes (where required).
This paper looks at the key issues involved with dual occupancy and focus on:
- ‘Small scale’ dual occupancy (duplexes); and
- Implications for private residential dwellings and the tax implications of those, including the Main
Residence Exemption (MRE) for capital gains tax (CGT) purposes and the Principal Place of Residence (PPR) exemption for land tax purposes.
This paper is structured around a comprehensive practical case study based on ‘real world’ examples and observations.