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

Published on 02 Nov 2020 | Took place at Online, National

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?

Individual sessions

Revenue v Capital - What happens when the intended use of property changes?

Author(s):  Sian Sinclair

This paper covers:

  • change of intention – Property overview 
  • income tax treatment of sale of property
  • trading stock changes
  • vacant land and denial of deductions
  • changes to your main residence
  • GST & change of use.
Materials from this session: