Self Paced Questions | Online Training Centre IMPORTANT If you accidentally close this window, you will lose your work. Use the Save and Continue button at the bottom of this form to save your work for later. June 2023 | Self Paced Questions | Property Review Explain ALL the tax consequences of the following common property scenarios. Name(Required) First Last Supervisor NameIf you are a tax agent without a supervisor, please ignore this field. First Last Your Email(Required) Enter Email Confirm Email Supervisor Email(Required) Enter Email Confirm Email (1) A taxpayer subdivides and then sells the back block of their primary residence.(Required)(2) A taxpayer subdivides the back block of their primary residence and then builds a unit they sell.(Required)(3) A taxpayer subdivides the back of their primary residence into two additional blocks. They then sell their home and the two blocks to one buyer simultaneously.(Required)(4) A taxpayer purchases an old house they make their primary residence for five years. They then demolish the old house and subdivide the block into two. They build two homes on the two blocks, making one their primary residence and the other they sell.(Required)(5) A taxpayer subdivides the back block of their primary residence and then builds a unit that they rent for 2.5 years. After 2.5 years, they sell the unit.(Required)(6) A taxpayer subdivides the back block of their primary residence and then builds a unit they move into and make their primary residence. They then sell their ‘old’ primary home.(Required)(7) A taxpayer and his wife purchase an apartment off the plan with a settlement due in 18 months. They intend to move into the apartment after settlement and make it their primary residence. Unfortunately, they divorced before settlement, so they sold the property immediately after settlement for a $150,000 gain.(8) Three friends want to do a property development together. They intend to buy an old house on a large block. Then they will subdivide the block into three blocks and build three townhouses. Two friends intend to sell their townhouses, and one wants to live in theirs.(9) Two friends, A and B, want to develop a joint venture property together. A owns a vacant block of land that will be subdivided into six blocks (this block cost only $500,000 but is now valued at $1,750,000). B is a builder and will build the six townhouses for $1,800,000.(10) A taxpayer purchases a hobby farm of 100 acres for $900,000. They then build a kit home for $250,000 and move into it as their primary residence. Five years later, they sold 50 acres for $1,000,000.(10) A taxpayer purchases a hobby farm of 100 acres for $900,000. They then build a kit home for $250,000 and move into it as their primary residence. Five years later, they sold 50 acres for $1,000,000.(11) A taxpayer purchases a hobby farm of 100 acres for $900,000. They then build a kit home for $250,000 and move into it as their primary residence. Ten years later, they sold it for $1,600,000.(12) A farmer has operated a cattle farming business on his 500-acre farm for 20 years (initially purchased for $300,000). Due to divorce, he subdivides and sells ten @ 10 acres of land for $1,500,000 (in total).(13) In 2015, Z established a family trust, and the trust purchased a house for $350,000. Z lives in the house rent-free. In 2023 the home is sold for $700,000 as Z needs to move into a retirement village and needs the funds to buy into the retirement village.(14) A & B own their own home and incur $32,000 in the year on interest, rates, repairs, insurance, etc. They are away overseas for an extended period, so they rent their house for 75 nights on Airbnb and receive $10,500 (net of fees).(15) X owns a holiday house in Margaret River, Western Australia. X incurs rental expenses of $40,000 per year on interest, rates, insurance, repairs, and building write-offs. X lists the property for rent for 12 months of the year but blocks out one month at Christmas and one month at Easter for private family use. The property generates a rental income of $20,000 for the year.(16) X owns her own 100 sqm two-bedroom apartment. Both bedrooms are 12.5 sqm each, and the general living areas are 75 sqm. X advertises one room for rent on Airbnb for the entire year but only rents it for 100 days of the year (at $100 per night after fees). X incurs $30,000 over the 12 months on interest, rates, repairs, insurance and building write-off.(17) A purchased a house on 4 acres for $500,000. A lives in the house and rents the 4 acres of land to a vegetable grower for $15,000 pa. After five years, A sells the property for $800,000.(18) A taxpayer purchases their primary residence for $500,000. After five years, the property is worth $750,000 when they start renting it. After another three years, they sell the property for $850,000(19) X purchases a rental property for $600,000, which they rent for three years. Then they live in the house for six years before selling it for $900,000.(20) A taxpayer purchases their primary residence for $320,000. After three years, the property is worth $400,000 when they rent it. After another ten years, they sell the property for $625,000NameThis field is for validation purposes and should be left unchanged.
