Comments on: Six Capital Gains Tax (CGT) and depreciation facts for property investors

By: BMT Team

BMT Team — Thu, 16 May 2019 01:40:06 +0000

Hi Fiona,

Thank you for your enquiry. I will have one of our expert staff contact you.

BMT Team

By: Fiona

Fiona — Thu, 16 May 2019 01:06:42 +0000

Hi there, I bought a unit 6 years ago, which I lived in for one year. Then I moved overseas and have rented it out for the last five years. I thought I had six years before CGT applies, but am I now a “foreign investor “? (I’m an Aussie citizen living overseas) And therefore CGT applies in full? How can I minimise this, including moving back in for a while?

By: BMT team

BMT team — Thu, 04 Apr 2019 00:37:30 +0000

Hi Becky,

Thank you for your enquiry. I will have one of our expert staff contact you.

BMT Team

By: becky

becky — Thu, 28 Mar 2019 04:52:05 +0000

I had an investment 2014 and sold 2018
all depreciation costs for 4 years that I claimed as a tax deductions for about 7000 in total
do I need to add back to cost base price? of the property for CGT and because its more than 12 months I am entitled for 50% CGT?

By: BMT Team

BMT Team — Tue, 01 Aug 2017 05:21:27 +0000

Hi Dianne,

Thanks for your question. Based on this information you have provided, you will most likely have to pay the capital gains tax (CGT) when it comes time to sell one day, whether this is during your retirement or otherwise, given that it doesn’t sound like this property is your primary place of residence. The good news is that under current legislation you would be eligible for a 50 per cent exemption on CGT, given that you have held the property for longer than twelve months. Feel free to drop us an email at socialmedia@bmtqs.com.au or call us on 1300 728 736 if you’d like to chat more about this at all. Alternatively, we recommend that you get in touch with your Accountant as they will be able to provide advice relating to your specific circumstances.

Thanks,
BMT Team

By: Dianne Versteegen

Dianne Versteegen — Fri, 28 Jul 2017 12:37:50 +0000

Hi
We have owned a rental property since 2001 and lived in it while we built another home in 2008 for 2 years. The property value has increased quite substantially and was wandering how capital gains would affect us after retirement.

By: Sheryn Laino

Sheryn Laino — Fri, 09 Dec 2016 04:13:20 +0000

Hi Chris,

Thank you for your query. In this instance we would recommend contacting your Accountant as they will be able to provide advice relating to your specific scenario and whether any deductions you claim to your primary place of residence would affect Capital Gains Tax when you decide to sell the property.

Thanks
BMT Team

By: Chris

Chris — Mon, 05 Dec 2016 04:26:26 +0000

I would like some clarification on depreciating your PPoR. I bought a house built in 1960 which I moved into straight away (June 2015). In the 15 months I was living there I had renovated the house (new kitchen, new laundry with second shower ect). The property was leased in September 2016 due to a change in my circumstances. My question is, will depreciating the improvements (made while I was living at the house) during the time the property is income producing trigger a CGT event EVEN if I move back into the house within 6 years?

By: BMT Team

BMT Team — Tue, 04 Oct 2016 06:26:43 +0000

Hi Lee,
Thank you for your question. As you don’t own another residence or primary place of residence, you should be able to seek an exemption from CGT under the six year rule. We recommend discussing your individual circumstances further with your Accountant.

By: BMT Team

BMT Team — Tue, 04 Oct 2016 06:24:33 +0000

If you get a market valuation at the time you rent out the property, the capital gain is calculated by the difference between the final sale price and the property value when it was rented. If you don’t get a market valuation, they will use the purchase price for the value.