Hi there i have a question on capital gains tax, a year ago i bought a block of land as a speculative thing and took out an interest only loan, my question is, if when i go to sell it, and i dont make any capital gains .. ie. the interest,stamp duty etc. that ive paid towards it and the price i sell it at, wat happens there with capital gains?? Do i just basically not put anything down when i do my tax because i havnt made a profit on it?? Or wat happens if when i work out wat i paid towards it and wat i sold it for.. that i actually lost money? wat would happen there?? any help would be much appreciated, thanks!
If you make a capital loss you should put it on your tax as you can carry forward capital losses into the next tax year.
"If your total capital losses for the year are more than your total capital gains, the difference is your net capital loss for the year. It can be carried forward to later income years to be deducted from future capital gains. You cannot deduct capital losses or a net capital loss from your income. There is no time limit on how long you can carry forward a net capital loss. You apply your net capital losses in the order that you make them."
Reference http://www.ato.gov.au/individuals/content.asp?doc=/content/36520.htmSee also
What is the cost base?
http://www.ato.gov.au/individuals/content.asp?doc=/content/36557.htm&page=2&H2
for cost base allowable items
"Under no circumstance can you claim capital loss against Non capital gain income (eg a wage or rental income,ect)"I think you have to fill in a CGT schedule if you have had a CGT event, even if there is no profit, and especially so if there is a capital loss or a gain.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I also believe there is GST on a vacent block of land that you may have to take into consideration.
T
You must be logged in to reply to this topic. If you don't have an account, you can register here.
