Published on 27 Jul 06
by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE
Topics covered in this paper include:
- developer versus operator
- capital versus revenue distinctions - resident contracts
- lease premium versus resident loan
- income tax treatments of deferred management fees, sharing of capital gain/(loss) with residents
- sinking fund and capital replacement fund issues - trust funds
- tax planning and structure issues
- sale of villages - capital gain or revenue
- transitional issues TR 2002/14 versus TR 94/24.
This paper was also updated and presented at the 'Retirement Villages: Understanding the tax implications' seminar held in Brisbane on 25 October 2006.