All Topics / Help Needed! / Capital Gains Tax query

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  • Profile photo of StreakerStreaker
    Participant
    @streaker
    Join Date: 2011
    Post Count: 24

    I recently sold an IP that I’ve owned since 2004. It was my PPoR for 5 years until 2009, when I moved and rented it out until November last year.

    I’m aware I’m eligible for a 50% CGT discount based on having owned it for more than 12 months, but is there any further reduction based on the first 5 years when I lived in the property?

    Many thanks in advance!

    Profile photo of RichardRichard
    Participant
    @mrbean
    Join Date: 2003
    Post Count: 7

    Hi Streaker the ATO provides informative download on what constitutes a Capital Gain event ( a loss included). From memory you may require to ascertain the value of the house when it ceased to be your PPOR. ie. what was it worth when you started renting it out as the C Gain is calculated back to this point as before that it was your PPOR.

     

    Profile photo of RichardRichard
    Participant
    @mrbean
    Join Date: 2003
    Post Count: 7

    Hi Streaker
    the ATO provides informative download on what constitutes a Capital Gain event ( a loss included). From memory you may require to ascertain the value of the house when it ceased to be your PPOR. ie. what was it worth when you started renting it out as the C Gain is calculated back to this point as before that it was your PPOR.

     

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

    but is there any further reduction based on the first 5 years when I lived in the property?

    Yes, it could be either

    a) cost base reset to the value at date first income producing

    or

    b) above plus using the 6 year rule and apportioning.

     

    seek tax advice

    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

Viewing 4 posts - 1 through 4 (of 4 total)

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