Looking to minimise CGT, the situation is as follows-
bought property A in April 1999 @ $250000, Rented out until May 2002,
then empty, being renovated until July 2003, PPOR from July2003 to October 2004 when sold for $690000- approximately $150000 spent on renovation.
Property B was PPOR from 1995 to July 2003 then rented out.
Rough calculation $690000
___________
less buy $250000
gov. S.D. transfers etc $12000
cost of renow. $150000
cost of selling $20000
____________
capital gains = $258000 51/66 months as investment
property = $199000
Less 50% = $99500 taxed @ marginal rate
I will be speaking to accountant next week any alternatives or tweaking would be appreciated.
bought property A in April 1999 @ $250000, Rented out until May 2002,
then empty, being renovated until July 2003, PPOR from July2003 to October 2004 when sold for $690000- approximately $150000 spent on renovation.
Property B was PPOR from 1995 to July 2003 then rented out.
Rough calculation $690000
___________
less buy $250000
gov. S.D. transfers etc $12000
cost of renow. $150000
cost of selling $20000
____________
capital gains = $258000 51/66 months as investment
property = $199000
Less 50% = $99500 taxed @ marginal rate
I will be speaking to accountant next week any alternatives or tweaking would be appreciated.
