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CGT1 2vgpacer1970 [12 Posts] I bought my 1st house in NSW, June 2003 for $140K, lived in it till April 2008 and rented it out to present day, bought 2nd house Brisbane, June 2008 for $340K. I am thinking of selling 1st house, now worth $280K, the 2nd house (currently living in) is principal house so the bank says,,,,,,,,how much CGT if I sell the 1st house now? BJ vgpacer1970 [12 Posts] P.S............My partner has a house rental owing $115K, should we pay it out or most of it and use it as a tax write off?  duckster [1620 Posts]  june 2003 140k to April 2008 Assuming was PPOR should we pay it out or most of it and use it as a tax write off? Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser. vgpacer1970 [12 Posts] Meant that pay out partners house or most of it and use it as tax write off? Real estate guy said it was worth $260K in April 2008 and because I lived in it 2003-2008 that CGT is only on the difference of that amount compared to the $280K it is worth now??????? ($20K) my income currently $105K Solomon10 [36 Posts] I have heard you can sell your PPOR up to 6 years after moving out and not pay any CGT, not sure if this applies if you have a new PPOR though. Terryw [11895 Posts]  Solomon10 wrote:
I have heard you can sell your PPOR up to 6 years after moving out and not pay any CGT, not sure if this applies if you have a new PPOR though. it could possibly apply - though CGT would apply to the 2nd house during the overlap period. Which to claim may depend on growth during this time - chose the highest growth property as the main residence. Terryw crj [525 Posts]  You sya your partner has a house too. If your partnerw ould be entitled to claim that house as a PPOR for part of the time you have been together then you and your partner would have to elect which house had PPOR status or half of each house. Otherwise your real estate agent is correct although you should have a valuation done in case you are audited. Selling costs including commission would also reduce your capital gain vgpacer1970 [12 Posts] The bank I used would have the estimations for both properties when I bought the Brisbane house. My partner only came onto the scene last year. vgpacer1970 [12 Posts] Bank said they valued the 1st house March 2009 @ $280K so I would imagine that it was worth around that in April 2008 when I moved out? So if I get $280K for it now does that really mean I don't pay CGT at all? Terryw [11895 Posts] Possibly you may even have a capital loss. You will need something better than the "bank said" though if audited. Terryw vgpacer1970 [12 Posts] The bank has an independant appraisal on their records, wouldn't that be ok if audited? IP Freely [313 Posts]  No, the ATO is auditing you, not the bank. If you did not commission the valuation then the valuer (nor the bank) may not extend the right to use the valuation to yourself. The purpose of the bank's valuation is for mortgage purposes which differs greatly from a valuation for market value for the purpose of a sale. I.P. Freely - 'cause I can! vgpacer1970 [12 Posts] I believe the real estate agent also has an estimation at the time of renting in April 2008, would that be enough as how do I know what the real estimate is? at that time? Terryw [11895 Posts] Agents estimates are worthless from a tax perspective as they are mere pitches to get your business and not valuations. You can actually order a valuation and instruct the valuer that you want the value of the property as of a certain date. Terryw vgpacer1970 [12 Posts] How are you to know what the property is worth at the time of vacating and renting out? especially a couple of years ago? vgpacer1970 [12 Posts] But thats what the bank did in march 2008 as stated above??????????? when I refinanced. vgpacer1970 [12 Posts] The bank has it on file, also the real eastate has a valuation on file also, wouldn't that be enough to satisfy an auditor? Terryw [11895 Posts] When the auditor asks for a copy what will you do?? Terryw 1 2 |
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