From: Terry D
Hello All
Yes another lurker comes out of the woodwork.(I can hear Robert already) I have a Capital Gains Tax question but firstly - My partner & myself stumbled into Investment Properties in Dec.1999. We bought our first I.P. Knowing nothing at all about it only that it seemed like a good idea having someone else helping you to pay for it. Over the next 18 mnths I,d heard a bit about negative gearing but nobody I associated with could explain it in detail. About 5mnths ago I was advised to buy Jan,s book "Building Wealth through Investment Property" 8 books later, buying a computer & joining this community I quickly learnt that property investment was agood way for my partner & my self to become financially independent.
The reason for my silence (lurking) is that it is hard to ask questions when you dont know what to ask & even harder to answer other peoples questions not knowing the answers & knowing that there is so many experienced investors here all knowing and willing to share their Knowledge. I have found that it is a great learning experience just reading other people,s questions & answers. I for one even though a silent one am very appreciative of all those who not only post the answers but also those who post the questions.
We have now bought our 2nd I.P. Settlement should go through in a week or two.
Now for my Q.
My partner has a 50% share in a property with her brother in-law. They bought it in 1985. She has never made any money from the unit as her brother in-law & her sister lived there. Now they are divorced and the brother in-law is still living there with his new wife & he wants to buy my partners share.
My question is will she have to pay Capital Gains Tax and if so can someone explain to me both the indexation method & the discount method I have gone back through the posts but cant seem to find any thing on the index method.
Thanks
Terry
"I started out with nothing and I still have most of it"
Hello All
Yes another lurker comes out of the woodwork.(I can hear Robert already) I have a Capital Gains Tax question but firstly - My partner & myself stumbled into Investment Properties in Dec.1999. We bought our first I.P. Knowing nothing at all about it only that it seemed like a good idea having someone else helping you to pay for it. Over the next 18 mnths I,d heard a bit about negative gearing but nobody I associated with could explain it in detail. About 5mnths ago I was advised to buy Jan,s book "Building Wealth through Investment Property" 8 books later, buying a computer & joining this community I quickly learnt that property investment was agood way for my partner & my self to become financially independent.
The reason for my silence (lurking) is that it is hard to ask questions when you dont know what to ask & even harder to answer other peoples questions not knowing the answers & knowing that there is so many experienced investors here all knowing and willing to share their Knowledge. I have found that it is a great learning experience just reading other people,s questions & answers. I for one even though a silent one am very appreciative of all those who not only post the answers but also those who post the questions.
We have now bought our 2nd I.P. Settlement should go through in a week or two.
Now for my Q.
My partner has a 50% share in a property with her brother in-law. They bought it in 1985. She has never made any money from the unit as her brother in-law & her sister lived there. Now they are divorced and the brother in-law is still living there with his new wife & he wants to buy my partners share.
My question is will she have to pay Capital Gains Tax and if so can someone explain to me both the indexation method & the discount method I have gone back through the posts but cant seem to find any thing on the index method.
Thanks
Terry
"I started out with nothing and I still have most of it"
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