need some advice
- Thread starter bram
- Start date
Yep, sale goes from contract date to contract date.
MB,
what happens after 12 months if you sell an IP. I thought you still had to pay cap. gains? Doesn't it depend on your income tax rate?
Arriety
>Sell now and you'll get hit with full CGT.
>*If* you are inclined to sell it to them, at least defer the sale >until after the first 12 months is up.
>MB
what happens after 12 months if you sell an IP. I thought you still had to pay cap. gains? Doesn't it depend on your income tax rate?
Arriety
>Sell now and you'll get hit with full CGT.
>*If* you are inclined to sell it to them, at least defer the sale >until after the first 12 months is up.
>MB
After 12 months, CGT is payable on 50% of the capital gain.
The CGT amount is added to your taxable income.
So if you bout a place for $200K, and sold it 11 months later for $250K, $50K (less acquisition costs) would be added to your taxable income for that tax year. But if you sold it 12 months later, only half of that amount would be added to your taxable income.
(If you've had the asset for some years, there's older rules which may be applicable, but this is not the case here).
The CGT amount is added to your taxable income.
So if you bout a place for $200K, and sold it 11 months later for $250K, $50K (less acquisition costs) would be added to your taxable income for that tax year. But if you sold it 12 months later, only half of that amount would be added to your taxable income.
(If you've had the asset for some years, there's older rules which may be applicable, but this is not the case here).
Oh thanks,
I didn't realise that. Is it true that if you live in a property then move out and rent it, but then move back in before 6 years have lapsed, then sell, you pay no CGT? If you were young enough and clever enough, (I'm not!) could you keep selling your property of residence and not pay any CGT in the end?
A.
I didn't realise that. Is it true that if you live in a property then move out and rent it, but then move back in before 6 years have lapsed, then sell, you pay no CGT? If you were young enough and clever enough, (I'm not!) could you keep selling your property of residence and not pay any CGT in the end?
A.
This is my understanding, but you cannot own another PPOR in the meantime. You can only own one PPOR at any given time. This means that whilst you are "moved out", you will probably be renting somewhere else yourself.
