All Topics / Help Needed! / Help the auctons tomorrow!

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  • Profile photo of gettin startedgettin started
    Member
    @gettin-started
    Join Date: 2010
    Post Count: 2
    September 24, 2010 - 9:16 am

    Hi,

    I'm desperate for some help. The auction is tomorrow!

    My partner owns a property (A) and we want to purchase another house (B). House (B) will be purchased as a shared property between us and I have never owned property before.

    If property (A) is my partners principle place of residence and property (B) is my principle place of residence when we sell property(B) do we pay capital gains tax on the whole amount or just my partners share? (I.E is my share exempt)

    Also, how much is CGT? Is there a general rule or percentage to work it out?

    Anyones experience is highly appreciated!

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404
    September 24, 2010 - 9:25 am

    If you live in property B it is your PPOR so you pay no CGT if you sell. Your partner however is not living there so he will pay CGT on his half. This could change if you haven't been living there the whole time. But if you liced there from the start then rented it for less than 6 yrs you still don't pay CGT.
    If you sell after 12 months the CG is halved. ie take all buying costs from the sale price. That is the CG.

    Then it is added to your income so it depends on your tax rate.

    Hope that makes sense.
    I'm pretty sure this is right but check the ATO to be sure.

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