All Topics / Help Needed! / Capital Gains

Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of Marie123Marie123
    Participant
    @marie123
    Join Date: 2009
    Post Count: 176

    Sorry guys. I have had a mental blank. When you have a capital gain, which you have held for more than 12 months, (bought property in 05) do you half the gain and derive the tax payment on that figure?

    I know I can probably google it in my absentmindedness but I am racing out the door …

    Many thanks!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Generally yes. an asset held more than 12 months gets the 50% CG discount. This amount is then added to your other income which determines hte tax payment (after deducting other expenes)

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Marie123Marie123
    Participant
    @marie123
    Join Date: 2009
    Post Count: 176

    Thanks Terry! I left and then realised I was on the right track. Doh. Now I wonder though what the "generally" means (unless you mean the year it was acquired?) :)

    Cheers

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Well, companies cannot get the 50% discount. There may be more exceptions too.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of vijaykini1027vijaykini1027
    Member
    @vijaykini1027
    Join Date: 2012
    Post Count: 3

    Hi Terry,
    Can you please advise me on my strange situation. Me and my friend bought a property in 2007 as a main  residence and we lived there for almost 2 years then we rented it out in 2009.
    Now since then my friend has bought another property as a main residence and I am still renting. So how will six year rule on CGT will apply to us.
    Any answers and by anyone will be greatly appreciated.

    Thanks in advance

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I would imagine that your interests in the property would be treated separately.

    If you are renting the property out after establishing it as your main residence then the CGT exemption could apply if you have no other residence which you are classing as a main residence

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404
    Terryw wrote:
    I would imagine that your interests in the property would be treated separately.

    If you are renting the property out after establishing it as your main residence then the CGT exemption could apply if you have no other residence which you are classing as a main residence

    Unless they are living together? Say if he was renting at her place?

     Wouldn't it then be treated as a spouse and the exemption lost?  Or isn't it that type of friend?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Good point Catalyst!

    If they were spouses (married or defacto whether same sex or not) then only one main residence between them.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of vijaykini1027vijaykini1027
    Member
    @vijaykini1027
    Join Date: 2012
    Post Count: 3
    Terryw wrote:
    Good point Catalyst!

    If they were spouses (married or defacto whether same sex or not) then only one main residence between them.

    No we are not spouses, we are mates  and had decided to live in shared accommodation with  our families but then the plan changed.
    Thanks guys for your answers, But i still need to find out wether I will be exempted by CGT or will have to pay it because my friend bought another property.

    Profile photo of vijaykini1027vijaykini1027
    Member
    @vijaykini1027
    Join Date: 2012
    Post Count: 3
    Terryw wrote:
    I would imagine that your interests in the property would be treated separately.

    If you are renting the property out after establishing it as your main residence then the CGT exemption could apply if you have no other residence which you are classing as a main residence

    I hope so Terry ATO looks at it this way.

    Thanks for your reply

Viewing 10 posts - 1 through 10 (of 10 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.