Cgt

[Keifer]

I've owned my Victorian IP for eight years. I lived in it for the first three years and I'd like to sell in approximately two years from now. Am I likely to pay capital gains tax on this? Being an IP for the last five years I have not paid much off the principal overall on this property.

Cheers
Keef

 

[Terry_w]

Possibly exempt depending on the circumstances.

 

[Paul@PFI]

My quick maths suggests that you have owned it for 8. In two years that will be 10. Less three you lived in. = 7 years absent. Hence some CGT issues will occur as the max CGT MR exemption when you are absent is 6 years. Your eligibility for the whole of the 6 years needs to be determined.

Fact - Some period will be taxable and some period will be exempt.

Its is likely a pro-rata of the actual gain may arise based on period of ownership subject to several issues.

Personal advice is needed. There may be a strategy to avoid CGT altogether...Maybe.

 

[Keifer]

Ok thanks guys.

Is there anyone I can speak to regarding this matter? Any recommendations either in Brisbane (I live there now) or Melbourne.

Or is it better to speak with my tax agent. I don't have a personal accountant.

 

[Terry_w]

I've owned my Victorian IP for eight years. I lived in it for the first three years and I'd like to sell in approximately two years from now. Am I likely to pay capital gains tax on this? Being an IP for the last five years I have not paid much off the principal overall on this property.

Cheers
Keef

i take it you have rented it out for 5 years. If it is sold within 6 years of it being rented out then it could be exempt from CGT depending on the circumstances.

 

[albanga]

Wouldn't this largely depend on whether or not you have claimed another PPOR. From my understanding if you moved out after 3 years and into a new PPOR then you would only be exempt for those 3 years. Meaning 7 years of CG?

 

[Terry_w]

Wouldn't this largely depend on whether or not you have claimed another PPOR. From my understanding if you moved out after 3 years and into a new PPOR then you would only be exempt for those 3 years. Meaning 7 years of CG?

That is one thing to consider, but the claiming is not done until after the sale and at the time the tax return is submitted. So even if there was another property being lived in this would not rule out getting an exemtpion.