Hello,
If i paid $70k for a small unit 3 years ago. If i sold that for $105.
My loan is currently at $50.
Do i get taxed on capital gains $55k or $35k? How do show its original value? When i do my tax next year will the Tax Deptarment want to see original documents. Does that only include the sale price, scolicitors fees and other costs are they taken into the overall profit of the flat?
Sorry one more question, will someone want to but my place more if a tennant is in the last part of their lease, eg. 2-3 months. Currently they have 5 months to go.
ThanksCGT is paid on the overall profit. So it would be $35K less all buying and selling costs. Also less any capital improvements you made.
But if you claimed depreciation then this has to be added back.
You will need documetns to prove everything. Not for your tax return but for any audit that the ATO may conduct.
Tenant on a month to month lease is ideal. The new person can then be a homebuyer or investor. A five month lease isn’t too bad but a 12 month one may turn away a lot of homebuyers.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
For suggested reading on this I would recommend
“Tax Battles” by Dale Gatherum-Goss.Explains the process of very well.
John Blackburn
http://www.propertybooks.com.au
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