All Topics / Help Needed! / CGT question

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  • Profile photo of pasandbecpasandbec
    Member
    @pasandbec
    Join Date: 2005
    Post Count: 122
    May 18, 2007 - 5:06 am

    Sorry if this question has been asked a million times already but I was hoping someone might be able to help me.

    Does anyone know how much CGT I would be paying if I were to sell my IP? I lived in the property for the first year and a bit (during which there was a big property boom) then I rented it out and it has been rented out ever since. From what I have read the CGT would only be calculated on the period for which it was rented out, i.e. based on the value of it at the time I started renting it out to when it's sold. However my sister doesn't agree with me. She thinks it's based on the whole period I've owned it (i.e. based on the value of what I brought it for to what it's sold for) and then worked out percentage wise in regards to how long it was rented out for.

    Quite a confusing topic I find, can anyone clear the air for me?

    Thanks,
    pasandbec

    Profile photo of Real2Real2
    Member
    @real2
    Join Date: 2007
    Post Count: 15
    May 18, 2007 - 5:29 am

    Assuming you bought the property after Aug 1996, you are correct, and your sister is wrong.  Don't forget the 50% CGT discount either.

    Profile photo of pasandbecpasandbec
    Member
    @pasandbec
    Join Date: 2005
    Post Count: 122
    May 19, 2007 - 3:45 am

    Thanks Real2.

    I think I also remember something about having to choose which house I want to consider my PPOR (for CGT purposes) aswell…. I currently have a PPOR and an IP….

    ???

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