Hi guys
I’ve just got two questions to ask.
1) In the US, section 1031 of the Internal Revenue Code allows a seller to delay paying taxes on a piece of real estate that is sold for capital gain through an exchange for a more expensive piece of real estate. My question is, is there a tax code enabling you to do this or something similar in Australia?
2) My second question is, if you’ve claimed depreciation on your IP, when calculating capital the gains tax does the ATO calculate your capital gains from the selling price minus the depreciated price. Or the selling price minus the purchase price?
Thankyou!Hi
1) No, generally, but there may be concessions if the property has been used as part of a business. Superannuation strategies may be available too.
2) If you have claimed depreciation, then this is taken into account when calculating CGT – it is added back. Not sure how this all works though.
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
You must be logged in to reply to this topic. If you don't have an account, you can register here.
