If I have owned a property fo 15 years, in that time the first 14 years was my residence and the last I rented the property out. My question how does capital gains tax effect me?
Do you have another main residence – from the date you moved out? if not, then it can be CGT free for up to 6 years.
If you do then you're property would be CGT free for the first 14 yrs, and then CGT would apply from the date it ceased being your main residence.
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
You will need to get market value appraisals as at the date you moved out (back dated appraisals are fine) That value will be the cost base for your capital gain calculation. (sale price less market value when you moved out, will be total capital gain) You will be elligible for the 50% discount. a pro-rata (time based) calculation is not available in this case.
A capital gains tax (CGT) is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.
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