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Added on: 0000-00-00 00:00:00Order Code: Question Task Id: 0
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Revenue Law Assignment Help:
Task:
Peter, an Australian resident, has lived in his house in Lindfield, Sydney since 1990 and purchased for $450,000. The four bedroom house was located on a large 900 m block, with the property located in the front part of the block. From January 2016 to January 2017 he has been involved with online accommodation hosting site Air B and B and has had numerous people stay overnight, utilising two of the four bedrooms. The normal way the arrangement is organised is through word of mouth, and the listing on the online hosting site. In the year ended 30 June 2016, he received $25,000 for such Air B and B accommodation bookings. The money was never received by Peter, but transferred directly to the school account for his 15 year old daughter for her school fees. At that time the school fees were $30,000. The outstanding $5,000 has been forgiven by the school.
In January 2017, he decided to subdivide his land into two 450 m blocks, with the intention of building a townhouse. The subdivision is approved and, while he is building the two bedroom townhouse, he continues to live in his existing house. When the two bedroom townhouse is completed he moves into that townhouse, lives in it for six months, receiving all of his bills, car renewal reminders etc at that new address, and then sells it. During that six month period, he rents out his four bedroom house for six months. After the six month period, he then moves back into his four bedroom house for the next six months, receiving all of his bills, car renewal reminders etc at that new address. In March 2018 he decides to sell the four bedroom house, move to Hobart and live with his brother.
His overall development costs to subdivide and build the townhouse total $500,000 and he sold the two bedroom townhouse for $800,000 and the four bedroom house for $1.5 million.
Discuss
Uploaded By : jack
Posted on : April 21st, 2018
Downloads : 1
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