CGT

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Most excellent
Member
@most-excellent
Join Date: 2003
Post Count: 100
March 9, 2004 - 7:33 am
I’m seeking advice on the amount of CGT I’ll have to pay should I sell this property in April 2005 ( assuming current tax laws do not change ) :
I bought 3BDR brick house in 1997 for 77K, currently worth 190K. I intend to rent this property for 180pw for twelve months commencing April 2004. Previously used as residential property for myself with zero income generated during 1997 – current. I estimate this property to be worth 210K – 215K by April 2005, is it possible to do near precise maths on this senario ?
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Mortgage Hunter
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@mortgage-hunter
Join Date: 2003
Post Count: 3,781
March 9, 2004 - 7:40 am
You lived in the house in 1997? For 12 months?
Assuming you didn’t own another home you have 6 years from when you moved out to sell with a full CGT exemption. If you occupied it again this 6 years starts again.
You will need to ascertain the total profit after all purchase and selling costs.
Pro rata it for the period after the CGT exemption. ie if you own it for 8 years and ran out of CGT exemption in the 7 th year then 1/8 the profit.
Halve this figure for the 50% discount as you held it for over 12 months.
Add this figure to your income and calculate the tax.
As you can see there are too many unknowns to give you an accurate idea.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Most excellent
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@most-excellent
Join Date: 2003
Post Count: 100
March 9, 2004 - 7:49 am
I lived in PROP for seven years from 1997 to 2004
Mortgage Hunter
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@mortgage-hunter
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Post Count: 3,781
March 9, 2004 - 7:53 am
If you didn’t buy another home then you have until 2010 before you have to pay any CGT.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Most excellent
Member
@most-excellent
Join Date: 2003
Post Count: 100
March 9, 2004 - 8:00 am
Thanks Simon,
Just curious if I did purchase at say 1 IP per annum & sold mentioned PROP in 2009 what would that equate to ?
Mortgage Hunter
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March 9, 2004 - 8:39 am
If you sold your old PPOR in 2009 and you didn’t own another PPOR you will still pay no CGT.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Most excellent
Member
@most-excellent
Join Date: 2003
Post Count: 100
March 10, 2004 - 8:42 am
What if I did buy a 1 PROP before 2010 & used it for my own residence. ( zero income generated )
Am I still exempt ?
Mortgage Hunter
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Post Count: 3,781
March 10, 2004 - 8:58 am
You can only have exemption for one home. You would have to decide which to have the exemption on.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
melbear
Member
@melbear
Join Date: 2003
Post Count: 2,429
March 10, 2004 - 11:03 am
But you don’t have to make the decision until you sell. However, it would be a good idea to get a valuation done on the house you move out of when you move out. Talk to your accountant about this.
Cheers
Mel