183 Year Test

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The primary test for determining whether Fred is a resident of Australia is the residence according to ordinary concepts test. This concept clearly covers migrants, but will also extend to persons dwelling in Australia for a considerable period of time. As Fred leased a residence for 12 months and stayed actually for 11 months he is a resident of Australia for taxation purpose as Fred established that he intended to live here for 12 months with his wife. The court also considered that any individual can be an australian residence for taxation purpose if the taxpayer spends at least some time physically present in Australia during the year of income to be considered a resident. However , in the given case it’s clear that Fred stayed for 11 months and his behaviour over the 11 months was consistent with that intention. The purpose of the visits was setting up branch of his company and the location of a Fred’s wife and social ties will also provide evidence of residence. The 183-day test, requires physical presence in Australia for more than one –half of the year. Under this test, an individual will be considered a resident of Australia where he or she is in Australia for more than 183 days , whether continuously or intimittenly, unless the commissioner is satisfied that the person’s usual place of abode is outside Australia and that he or she does…show more content…
Collectables acquired for $500 or less are exempt from capital gains tax. She purchased the bed for $3500 on 21 july 1986 and after performing some alterations it increased the value of the bed and cost 1500.Recently the market value was 25000 but its been stolen from her house and she lodged a claim with her insurance company seeking to recover her loss. But unfortunately insurance company advised her that an antique bed is not on her insurance policy she would be paid only 11000 which portrays she is in loss. There is a need to calculate the cost base of the CGT

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