Description

The bright-line test has recently been extended to apply to residential properties sold within 10 years of acquisition, although the 5-year bright-line period still applies to the purchase of new residential properties. The main home exclusion has also been modified, so that changes in the use of a family home must be considered in determining the extent to which the main home exclusion applies.

This webinar considers a number of issues that arise under the bright-line test and the RLWT rules. Issues arising under the new 10-year bright-line test include the effect of nominations, assignments and novations, calculation of the bright-line period where land has been subdivided and in other unusual situations, the application of the new main home exclusion where bare land is acquired and the family home is erected on that land, the application of the main home exclusion to trusts, and using relationship property agreements to mitigate the tax implications arising under the bright-line test. Issues arising under the RLWT rules include complications in determining whether a landowner is an offshore person, particularly where the landowner is a trust.

LEARNING OUTCOMES

You will:

• Learn about when the bright-line test applies, including whether the sale of residential land is subject to the 2-year, 5-year or 10-year bright-line period
• Know how to determine the date of acquisition of property and the calculation of the bright-line period
• Understand the effect of nominations, assignments and novations on the application of the bright-line test
• Know how the main home exclusion applies to trusts, along with recent changes to the main home exclusion
• Learn about when the other exclusions to the bright-line test will apply, including the exclusion for transfers pursuant to a relationship property agreement
• Understand when the RLWT forms need to be completed
• Learn when RLWT will apply and how to calculate the amount of RLWT
• Know when a trust will be treated as an offshore RLWT person
• Understand what other changes to the bright-line test or RLWT rules are possible in the future

SUITED TO

Junior and intermediate accountants, property lawyers and conveyancers, and others who advise clients on land transactions.

PRESENTER

Stephen Tomlinson, Principal, Tomlinson Law