We have an investment property (villa) in Mackay Qld which we are thinking of selling. Could anyone please advise where we can find out information on what costs (besides real estate) that we’ll be up for? ie. stamp duty & CGT?
Thank you.
Nani
Email MeThe road to success is always under construction
Samson
In qld you will not be subject to GST on an IP (Assuming you didnt develop the orignal villa and have treated for such under the margin scheme).
You will only be subject to CGT dependant on the date you signed the original contract compared to the date you settle on the sale.
As always talk to you accountant as you maybe able to offset a capital agin against previous capital losses that may have accrued.
Cheers Richard
richard at castlewhite.com.au
Email me for details of our Qld wrap CD which gives you a full Installment Contract.Richard Taylor | Australia's leading private lender
As a supplement to Richard’s excellent response to you, there is no vendor stamp duty in Qld (like there is in NSW), and so stamp duty on a sale in Qld is generally a purchaser problem.
For more information on CGT, the ATO has a pretty useful introduction guidebook available from its wesite (www.ato.gov.au). Assuming the property was purchased post-1985 and assuming the gain is coming back to individuals (ie the villa is not held in a company), then as I understand it 50% of the capital gain will be added to your taxable income and assessed at your marginal rate of tax. But the 50% discount is only available if you have owned the villa >12 months – so if you are close to the 12 mths, be careful to check the dates. I think the relevant dates are date of contract and not date of settlement.
SKM
You must be logged in to reply to this topic. If you don't have an account, you can register here.
