calculation of CGT on an ex-PPOR

[magich2o]

I'm trying to work out the CGT payable on my old house which used to be a PPOR. Say,
- House was bought Oct 2000 for $200k,
- Ceased to be a PPOR on Oct 2001 (when the market value was $275k)
- Sold in Oct 2002 for $300k.

Typically, the assessable value would be $50k (representing the gain since purchase price on 2000 less 50% as the property was a PPOR for 50% of the time). We then deduct a further 50% to arrive at a CGT assessable value of $25,000 as the property
had been held for more than 12 months.

I was wondering if we could employ another way of looking at the calculation of CGT. Given that the market value of the property was $275k on Oct 2001, the gain when I sell in Oct 2002 is actually $25k. I deduct 50% as I have held it for longer than 12 months = $12,500. Can I use this method of calculation? Would it matter if I had or had not used it to produce income?

Continuning futher, then if I could prove (using QS, agent's estimate, etc) that the market value on 2001 was at least $300k, does that mean that no CGT would be payable? Or if it was actually greater than $300k, can I claim a tax loss?

Rgds Magic

 

[DaleGG]

Hi

The law was changed a couple of years ago now to the effect that the CGT is based on the difference between the sale price and the market value when it ceased to be your PPOR.

So, one for the good guys!

Have fun

Dale

 

[Richard Hunt]

Another alternative may be to "choose" it to be your PPOR for the period from Oct 01 to 02. This way you pay no CGT although you will expose your current PPOR to CGT in the future when you finally sell it.

 

[magich2o]

Thanks for your replies!

Does anyone know of a QS or someone who consistently values a property high (does real estate agents count???) for a property based on Oct 01 values and hence, will give a high enough value to get me a CGT-break or even a capital loss!!

Or are there any other innovative ways of estimating property values back in Oct 01, eg use the median price growth, etc?