Hi whiltst my husband and I have bought quite a few properties we have never actually sold property.
Can anyone tell me the tax implications etc as to what expensed I will incur if I decide to cash in on some investment properties that have performed extremly well.
thanks we look forward to your comments.
Sean & LisaCapital Gains tax is the main one as well as legal fees, agents fees etc.
CGT will depend on your other income etc at the time. If you have held the property for more than 12months you can get the 50% discount too.
It works roughly like this
CG – buying costs – selling costs – depreciation claimed = Capital Gain.This is then dvided by 2 and the figure is added to your income for that year. If the house is jointly owned, then you need to divide the figure between the owners.
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
Sean and Lisa,
Recently my hubby and I decided to cash in on one of our investmests. First time we had sold. It's much more nerve racking than buying. I found that it was important for me to feel confident with our agent. I interviewed 5 before we found one that offered a fair value to expect and that I felt confident in. Ironically the figure we got within four days of listing was more than she had anticipated, but also exceeded all the agents quotes. I also found the delay between deciding to sell and the house actually being listed seemed like forever, whereas it was actually about 8 days. We had tenants in so we wanted to work around them for photos and inspections etc. All in all, the agents costs for selling was much the same for all of them, they just had different fee structures. Some wanted advertising, wheresas others built this in.
Good luck with this, and I hope this works out.
JL
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