Hi everyone
I was wondering if anyone maybe able to provide me with CGT advice and what we maybe subject to pay on two separate properties
Here is a brief description of our situation:
Property 1:
a. Purchased my first home in January 1993 (ie. in my own name) for a $93,000 where I lived for a number of years before moving interstate.
b. After I moved interstate I arranged for my parent?s to move into the property where they have remained free of charge ever since
c. The property has never been rented as a result it has never ever been included in any of my tax returns as a rental property to the ATO
d. I recently has this property valued which came in around the vicinity of 520K
Property 2:
a. Then in March 2001 purchased another home with my wife (ie. in both our names) and payed $250k plus stamp duty of approx 15K. (ie; total = 265K).
b. We had intentions of moving into the house straight away but because of work commitments we had to remain in Sydney indefinitely.
c. The house was then let as an investment property from March 2001.
d. In March 2007 my family and I moved back from Sydney (ie. house vacated by the tenants) and it became our place of residence- where we have remained until now.
e. We then had the property re-valued (ie. in March 2007) as we were considering a renovation and wanted to ensure that we didnt over capitalise. That valuation came in at $530K.
f. In March 2010-September 2010 we renovated the property spending 180K.
g. Recently we had this property revalued and were advised that it was in the vicinity of 850K
We are looking to sell property 1 howevr before we do so I am trying to understand the CGT tax consequences (ie. if infact there are any) and the impact that CGT tax may have on property 2 and if we sold that in the future.
Trying to determine what the best options would be and how one would go about calculating the capital gain on both properties that would be applicable based on the details above
If it could be articulated in the way that I could follow based on the numbers and time frames detailed above I would really appreciate it.
Cheers
I was wondering if anyone maybe able to provide me with CGT advice and what we maybe subject to pay on two separate properties
Here is a brief description of our situation:
Property 1:
a. Purchased my first home in January 1993 (ie. in my own name) for a $93,000 where I lived for a number of years before moving interstate.
b. After I moved interstate I arranged for my parent?s to move into the property where they have remained free of charge ever since
c. The property has never been rented as a result it has never ever been included in any of my tax returns as a rental property to the ATO
d. I recently has this property valued which came in around the vicinity of 520K
Property 2:
a. Then in March 2001 purchased another home with my wife (ie. in both our names) and payed $250k plus stamp duty of approx 15K. (ie; total = 265K).
b. We had intentions of moving into the house straight away but because of work commitments we had to remain in Sydney indefinitely.
c. The house was then let as an investment property from March 2001.
d. In March 2007 my family and I moved back from Sydney (ie. house vacated by the tenants) and it became our place of residence- where we have remained until now.
e. We then had the property re-valued (ie. in March 2007) as we were considering a renovation and wanted to ensure that we didnt over capitalise. That valuation came in at $530K.
f. In March 2010-September 2010 we renovated the property spending 180K.
g. Recently we had this property revalued and were advised that it was in the vicinity of 850K
We are looking to sell property 1 howevr before we do so I am trying to understand the CGT tax consequences (ie. if infact there are any) and the impact that CGT tax may have on property 2 and if we sold that in the future.
Trying to determine what the best options would be and how one would go about calculating the capital gain on both properties that would be applicable based on the details above
If it could be articulated in the way that I could follow based on the numbers and time frames detailed above I would really appreciate it.
Cheers