Capital Gains

[jezza]

Hi all,

I bought a property in July 2000 for 180k, I lived in it until March 2007 and at this point it was valued at 400k.

In March 2007 I rented it out until January 2013. The property was vacant from January until March 2013 when I sold it for 600k.

I am trying to ascertain what capital gains I would be expected to pay on this.

thanks

Jezza

 

[geoffw]

I'd assume that you had another PPOR to live in after you moved out.

I'd guess that you have to add half of the capital gain (50% of $200k = $100k) to your income. The tax that you pay on that depends on your other income.

You may have acquisition costs and disposal costs which would reduce this.

 

[jezza]

Thanks Geoff,

Yes I did have a new house to move into, now the fact that the place was 100% actually in my wife's name and she is a stay at home mum on no income would this affect the amount we would have to pay

ta

Jezza

 

[geoffw]

I'd be guessing then that the CG is added onto her income rather than yours. So whatever tax rate $100k puts her into. (If she has HECS that may increase her liability).

But this is really a question for your accountant, not some guy on the internet who you don't know ;-)

 

[travelbug]

I'd be guessing then that the CG is added onto her income rather than yours. So whatever tax rate $100k puts her into. (If she has HECS that may increase her liability-)

I read it that the wife owned the second property?
Jessa do you mean the first house was in your wife's name? Or the second because you said you had a property. I assumed you meant the one you live in now was in your wife's name.

Jessa- Was the first house in your name only?

Wouldn't the 6yr rule apply? Not sure as you are living in a house that your wife owns but as its not in your name you're not claiming it as a PPOR.

If you can use the 6yr rule you'll pay no CG.

If you do have to pay it would be 50%of the increase of $200k minus costs etc. so less than $100k would be added to your income. That's assuming it was in your name only. If it was in both names I don't think you could claim the 6yr rule.
But as mentioned your accountant should be able to clarify (assuming they are property savvy).

Please clarify who owns what for clearer answers.

 

[matto_]

Would the name of ownership matter if they both lived there?