Hi I am hoping someone can help
I purchased a property in Queensland only 6 months ago and am selling it. Will I have to pay capital Gains on my profit? Rate?
Also are the costs of my home improvements I have done plus the selling costs taken off this capital gains profit?I also own another investment property overseas that I will be moving back into. Any advice will be great.
Charlena
CGT is payable at your marginal rate of tax, a discount of 50% is given if you have owned the property for more than 12 months. It is calculated on the capital gain made eg Bought for $100k + $10k SD/Legals + $20k refurbishment = $130k. Sale $140k less comm $5k = $135k. Taxable Net profit = $5k
SNM is right with the odd exception.
Property owned in a SMSF receives a 33% CGT discount not 50% and the date of the purchase contract / sale contract is applied for Capital Gains and not the Settlement dates.
Richard Taylor | Australia's leading private lender
charlena wrote:Hi I am hoping someone can helpI purchased a property in Queensland only 6 months ago and am selling it. Will I have to pay capital Gains on my profit? Rate?
Also are the costs of my home improvements I have done plus the selling costs taken off this capital gains profit?I also own another investment property overseas that I will be moving back into. Any advice will be great.
Charlena
Did you ever live in it, and if so did you have another property at the same time?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:charlena wrote:Hi I am hoping someone can helpI purchased a property in Queensland only 6 months ago and am selling it. Will I have to pay capital Gains on my profit? Rate?
Also are the costs of my home improvements I have done plus the selling costs taken off this capital gains profit?I also own another investment property overseas that I will be moving back into. Any advice will be great.
Charlena
Did you ever live in it, and if so did you have another property at the same time?
Sorry to mislead. I am actually living in it since I purchased it in December 08. But intend selling now. While living in it I have made some improvements. As i have only been in for less than a year what CGT would I be hit with on the profit if I sell above the market price I paid? I am only new to house buying this is my PPOR Can I claim any deductions on the CGT?
thanks
There is no cgt on PPOR
Yes, you may not have any CGT at all – if you are not claiming any other house as your main residence at the same time.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
But isn’t there some stipulation about the intent to have the house as a PPOR when buying? If you intend to treat the house as a short term investment when buying are you not required to pay CGT (even if you were living in it)? I’m not entirely sure, especially how this is proven, but I have read it somewhere.
You get the main residence exemption for your PPOR. Your intention at the time of buying basically has no impact. If you were living in it and you had no other main residence, then any gain should be exempt from CGT.
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