Brought our home late 1982 pre capital gains, so if we were to rent this house our to students
my understanding is that when we come to sell it we would not have to pay any capital gain even
though we will now be receiving income from the property.There is no loan on this property, so could we clain the expenses re elec, management fees etc
against the income earned.Is there any thing we need to be aware of if we go done this path.
Comments appreciated.
SwanportHi there
if you are earning an income from the property you can claim your expenses including agents commissions, council rates, repairs and depreciation on any newer fixtures and fittings etcthe only time you might have a problem with capital gains if say you built another home on the land (in addition to the existing property) – which basically is changing the pre cgt asset to something extra which is post cgtYes Raddles is correct you will need to declare the rent as income but can also claim any expenses. No CGT as long as the asset isn't changed in any way.
Lucky devil!! Not many people still holding a pre CGT asset.Thank you for your comments Raddles and Amanda. For some time I've wanted to move house, they say the average person moves every seven years. If we can work our finances it looks like
the best option for us would be to keep this property never having to pay CGT.
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