Sorry guys. I have had a mental blank. When you have a capital gain, which you have held for more than 12 months, (bought property in 05) do you half the gain and derive the tax payment on that figure?
I know I can probably google it in my absentmindedness but I am racing out the door …
Many thanks!
Generally yes. an asset held more than 12 months gets the 50% CG discount. This amount is then added to your other income which determines hte tax payment (after deducting other expenes)
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
Thanks Terry! I left and then realised I was on the right track. Doh. Now I wonder though what the "generally" means (unless you mean the year it was acquired?)
Cheers
Well, companies cannot get the 50% discount. There may be more exceptions too.
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
Hi Terry,
Can you please advise me on my strange situation. Me and my friend bought a property in 2007 as a main residence and we lived there for almost 2 years then we rented it out in 2009.
Now since then my friend has bought another property as a main residence and I am still renting. So how will six year rule on CGT will apply to us.
Any answers and by anyone will be greatly appreciated.Thanks in advance
I would imagine that your interests in the property would be treated separately.
If you are renting the property out after establishing it as your main residence then the CGT exemption could apply if you have no other residence which you are classing as a main residence
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:I would imagine that your interests in the property would be treated separately.If you are renting the property out after establishing it as your main residence then the CGT exemption could apply if you have no other residence which you are classing as a main residence
Unless they are living together? Say if he was renting at her place?
Wouldn't it then be treated as a spouse and the exemption lost? Or isn't it that type of friend?
Good point Catalyst!
If they were spouses (married or defacto whether same sex or not) then only one main residence between them.
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:Good point Catalyst!If they were spouses (married or defacto whether same sex or not) then only one main residence between them.
No we are not spouses, we are mates and had decided to live in shared accommodation with our families but then the plan changed.
Thanks guys for your answers, But i still need to find out wether I will be exempted by CGT or will have to pay it because my friend bought another property.Terryw wrote:I would imagine that your interests in the property would be treated separately.If you are renting the property out after establishing it as your main residence then the CGT exemption could apply if you have no other residence which you are classing as a main residence
I hope so Terry ATO looks at it this way.
Thanks for your reply
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