ARTICLE · 26 AUGUST 2008

ATO Revised View A Great Win For Residential Property Developers

Moore Australia

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The ATO's recent release of ATO ID 2008/114 provides a favourable result for developers of new residential premises who are experiencing difficulties in selling their properties.

AustraliaTax

Stephen O'Flynn

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The ATO's recent release of ATO ID 2008/114 provides a favourable result for developers of new residential premises who are experiencing difficulties in selling their properties.

The ATO's revised view relates to how Division 129 applies in circumstances where new residential premises are constructed for sale, but are rented prior to sale. Division 129 applies to require an increasing or decreasing adjustment where there is a change in the extent of creditable purpose, i.e. where the actual use of a thing is different from the intended or former use of it. The following example explains how the ATO's revised view benefits developers.

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