We are about to sell one of our properties in Victoria. We purchased it about 2 years ago for $210,000 and are looking to sell for around $270,000 so have done okay for that period of time. As this is our first time in selling would like some advice on whether the real estate agents fees of $5000 + GST + $500 advertising fee is reasonable and whether CGT is payable on the entire $60,000 or only half of that amount. How long can we put off payiny CGT? Any other advice also appreciated.
yes 2.5% for agents fees sounds reasonable – always depending on how good they are of course. If they are great it’s a bargain – if they are hopeless you are being ripped off! if your business has been ‘renting properties’ then you should be able to claim a 50% CGT reduction – see http://www.ato.gov.au for heaps of worked examples. it will be payable with your normal tax return.
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
You will be able to reduce by 50% as you held it for over 12 months.
In addition there are other costs which you will be able to subtract from your profit before you are taxed on it. Buying and selling costs are some. Capital improvements a another.
I suggest you use a tax expert when you do your return to maximise your deductions.
cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Mossie, good luck with the sale. I’m sure you’ll already be aware of this but every paper, book or newsletter I read lately contains messages about how the ATO are cracking down on CGT and people not paying their fair share – if there’s such a thing! Make sure all of your accounting records are sound and up to date so you get to keep as many of your hard earned dollars as you can.
Cheers Elly
PS – You need to keep your records for 5 years after the year you put the return in.Thanks everyone for your advice. I hate CGT as I am sure everyone else does as well. Paying tax on money you have already paid tax on previously really gets to me. In the end the ATO has near 75% of every dollar when you pay capital gains. Anyway I won’t get started. Thanks again. Mossie
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