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.
20 May 2021
Junior and intermediate accountants, property lawyers and conveyancers, and others who advise clients on land transactions.
Stephen Tomlinson, Principal, Tomlinson Law
1.5 CPD Hours