{"id":11725,"date":"2017-05-16T03:00:48","date_gmt":"2017-05-15T17:00:48","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=11725"},"modified":"2017-05-16T03:00:48","modified_gmt":"2017-05-15T17:00:48","slug":"ken-raiss-answers-your-questions-ken-raiss","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/","title":{"rendered":"Ken Raiss answers your questions \u2013 Ken Raiss"},"content":{"rendered":"

Ken Raiss<\/strong><\/a> answers some of your questions about tax, capital gains and capital loss and where you stand in changing the status of your principal place of residence.\u00a0 He deals specifically with questions from Andy and Marie.
\nTranscript:<\/strong>
\nKevin:\u00a0\u00a0<\/b>A couple of questions we\u2019re going to answer on the show now. Joining us, KenRaissfrom Metropole Wealth Advisory.<\/a>
\nKen, thanks for your time. How are you?
\nKen:\u00a0\u00a0<\/b>I\u2019m well, Kevin. How are you?
\nKevin:\u00a0\u00a0<\/b>Good. I think we caught you in sunny Melbourne today too, haven\u2019t we?
\nKen:\u00a0\u00a0<\/b>Yes. It\u2019s a bit cold compared to some other states, but beautiful weather.
\nKevin:\u00a0\u00a0<\/b>Good on you, mate. A couple of questions, the first one from Andy: \u201cMost people always talk about capital gains and having to pay capital gains tax, but is there a capital loss? Do you claim the loss if you sell at a lower price than the purchase price?\u201d
\nKen:\u00a0\u00a0<\/b>I\u2019ll answer it quickly and then a bit of detail. You can claim capital losses, but only against capital gains. What you do is when you have a capital loss, you net it off your capital gain that you could have had in a previous period. It doesn\u2019t matter where that gain or loss comes from, so you can mix profits and losses from different assets, but the loss gets netted off against the capital gain and then you apply the 50% discount.
\nOne trap, though, that a lot of people forget is if you\u2019re talking property, you have to add back the depreciation that you claimed on the building. This reduces your costs when calculating the gain or the loss.
\nYou have to be careful that a capital gain or a loss can only be claimed if you\u2019ve kept that property for more than 12 months if you want the 50% discount. If you have sold that property in under 12 months, it\u2019s still to the capital account but without the 50% discount. And secondly, the date of sale for tax is the contract date, not completion, such as settlement. Hopefully, that answers your question.
\nKevin:\u00a0\u00a0<\/b>I\u2019m sure it does. Thanks for your question too, Andy.
\nI want to move to another one. This one is from Marie, multiple questions in this one. I\u2019ll give you the situation, Ken. Marie writes in saying she has a house in a capital city purchased in 2006. It\u2019s her principal place of residence. In January 2014, Marie remarried and moved to another city and lived in her new husband\u2019s home, which is in his name solely. She then rented out what was previously her principal place of residence in that capital city.
\nQuestion number one: \u201cIf I wish to retain my house in the capital city as my principal place of residence, will I need to move back into it no later than January 2020 due to the six-year rule?\u201d
\nKen:\u00a0\u00a0<\/b>You can only have one main residence for tax purposes, and that includes that property that could either be in your name or your husband\u2019s name. Between you, now that you\u2019re a couple, you can only have one property for exemption on the sale. So, you will have to decide whether you want that to be your property or your husband\u2019s property.
\nBut the beauty is you only have to decide when you sell one of them. At that point, you will then work out maybe which one would have got you the better tax results and then claim that one for tax purposes.
\nIt\u2019s going to be a bit hard in six years\u2019 time, so what I\u2019d be doing is I\u2019d be getting some market valuations for both your property, Maria, and your husband\u2019s so that you have a starting point to do a calculation, depending on what happens in the future.
\nKevin:\u00a0\u00a0<\/b>And then take some professional advice.
\nKen, just a second question from Marie \u2013 and I\u2019ll ask this quickly \u2013 if she were to move back in January 2020, how long would she have to physically stay in the house to reestablish it as her principal place of residence? Is there a timeframe?
\nKen:\u00a0\u00a0<\/b>There\u2019s no timeframe, because you could move in and then all of a sudden, get a job transfer or whatever. You must move in with the intention for it to be your principal place of residence and therefore occupy it as your home, which means you\u2019re going to have to change all the records \u2013 voting records, driver\u2019s license, bank accounts, having mail delivered.
\nKevin:\u00a0\u00a0<\/b>Oh, yes. Show evidence that you\u2019re actually living there.
\nKen:\u00a0\u00a0<\/b>Correct.
\nKevin:\u00a0\u00a0<\/b>Can I move to the third part of this situation from Marie? Alternatively, instead of moving back into her principal place of residence in January 2020, could she transfer or gift the house in the capital city to her adult child before that time \u2013 January 2020 \u2013 by creating a bloodline trust with her as the settler and he as the beneficiary? If she does transfer or gift the house to her adult child, would the capital gains be exempt because it is her principle place of residence?
\nKen:\u00a0\u00a0<\/b>You can always do that, but it will be a trigger for both capital gains tax and stamp duty. And both the tax department and the relevant state government will apply market rates at that date, so you can\u2019t call it a lower number. It\u2019ll have to be done at market rates, full capital gains tax, and then obviously, stamp duty by changing the title.
\nThe other thing you have to be very careful of, of course, is that while that place is not your principal place of residence because you\u2019re not living in it \u2013 which is different to tax \u2013 you have to look at land tax, because maybe you\u2019ll need to start paying land tax. And the various state governments have got different land tax rules dependent on whether the property is in a person\u2019s name or in a trust. So they have different rates to calculate land tax depending on the structure.
\nKevin:\u00a0\u00a0<\/b>A lot to get through there, but I want to thank you, Ken, for helping us, and Marie and also Andy, thank you for your very good questions.
\nKen Raiss <\/a>from Metropole Wealth Advisory<\/a>. Thank you so much for your time.
\nKen:\u00a0\u00a0<\/b>Thanks, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ken Raiss answers some of your questions about tax, capital gains and capital loss and where you stand in changing the status of your principal place of residence.\u00a0 He deals specifically with questions from Andy and Marie. Transcript: Kevin:\u00a0\u00a0A couple of questions we\u2019re going to…<\/p>\n","protected":false},"author":176692471,"featured_media":11726,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[34,10,11,13,36,22,23,25],"tags":[101],"class_list":["post-11725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-research-topic","category-selling-a-property-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"\nKen Raiss answers your questions \u2013 Ken Raiss - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ken Raiss answers your questions \u2013 Ken Raiss - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Ken Raiss answers some of your questions about tax, capital gains and capital loss and where you stand in changing the status of your principal place of residence.\u00a0 He deals specifically with questions from Andy and Marie. Transcript: Kevin:\u00a0\u00a0A couple of questions we\u2019re going to...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2017-05-15T17:00:48+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Ken Raiss answers your questions \u2013 Ken Raiss\",\"datePublished\":\"2017-05-15T17:00:48+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/\"},\"wordCount\":1075,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Finance\",\"Kevin Turner\",\"Kevin's Update\",\"Latest Stories\",\"Property Investment\",\"Research\",\"Selling a property\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/\",\"name\":\"Ken Raiss answers your questions \u2013 Ken Raiss - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2017-05-15T17:00:48+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/ken-raiss-answers-your-questions-ken-raiss\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Ken Raiss answers your questions \u2013 Ken Raiss\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Ken Raiss answers your questions \u2013 Ken Raiss - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/","og_locale":"en_US","og_type":"article","og_title":"Ken Raiss answers your questions \u2013 Ken Raiss - Realty Talk","og_description":"Ken Raiss answers some of your questions about tax, capital gains and capital loss and where you stand in changing the status of your principal place of residence.\u00a0 He deals specifically with questions from Andy and Marie. Transcript: Kevin:\u00a0\u00a0A couple of questions we\u2019re going to...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/","og_site_name":"Realty Talk","article_published_time":"2017-05-15T17:00:48+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"Ken Raiss answers your questions \u2013 Ken Raiss","datePublished":"2017-05-15T17:00:48+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/"},"wordCount":1075,"commentCount":0,"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/#primaryimage"},"thumbnailUrl":"","keywords":["podcast"],"articleSection":["Finance","Kevin Turner","Kevin's Update","Latest Stories","Property Investment","Research","Selling a property","Sponsored Channels"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/","name":"Ken Raiss answers your questions \u2013 Ken Raiss - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/#primaryimage"},"image":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/#primaryimage"},"thumbnailUrl":"","datePublished":"2017-05-15T17:00:48+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/#primaryimage","url":"","contentUrl":""},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/ken-raiss-answers-your-questions-ken-raiss\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Ken Raiss answers your questions \u2013 Ken Raiss"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/11725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=11725"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/11725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=11725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=11725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=11725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}