Comments on: When do you pay capital gains tax on investment property?

By: K. Chamos

K. Chamos — Wed, 31 Jul 2024 00:28:36 +0000

We bought our investment property in 1993, we have rented this property since, at that time, we paid the taxes and all the Lawn care. We are fixing it up (updating ) the property to sell now, to date, we have spent close to $30,000.00 for repairs and updating. Is the CGT collected at settlement and
could you give us an estimate of the total cost that would be. Thank you.

By: Michelle

Michelle — Fri, 03 Nov 2023 12:00:43 +0000

We bought an investment property with a house around 12 years ago. 10 years ago we out another house on the property. We are now subdividing with the intention to sell. They were both rented out during the time. Selling the original house will probably be the same as purchase but we have put a lot of money into it over the years so we are thinking we will break even. The newer house we are unsure about. If we made it our primary residence now how long would we have to stay in it before selling to minimise the cgt? Is it actually worth even doing this?

By: Michelle Baines

Michelle Baines — Fri, 03 Nov 2023 11:55:52 +0000

We bought a property with an investment property with a house around 12 years ago. 10 years ago we out another house on the property. We are now subdividing with the intention to sell. They were both rented out during the time. Selling the original house will probably be the same as purchase but we have put a lot of money into it over the years so we are thinking we will break even. The newer house we are unsure about. If we made it our primary residence now how long would we have to stay in it before selling to minimise the cgt? Is it actually worth even doing this?

By: The BMT Team

The BMT Team — Thu, 20 Jul 2023 00:38:45 +0000

Hi Amy, Thanks for your comment. When a property is sold at a net capital loss, the loss may be carried forward and deducted from capital gains in later years. For more information click here. As we’re only specialised in depreciation, we recommend consulting an accountant or financial advisor for advice regarding your individual scenario. Thanks, The BMT Team.

By: Amy

Amy — Tue, 18 Jul 2023 00:05:34 +0000

Hello,
Thank you for this informative article. We purchased a property in 2019, lived in it for two years, rented it out for two years, and now plan to sell.
Unfortunately it looks like the property will sell at a loss. Are we able to claim this loss through tax even though we would otherwise not be subject to paying CGT because of the 6 year rule?

Thanks for your help.

By: The BMT Team

The BMT Team — Fri, 23 Jun 2023 01:24:00 +0000

Hi Diana,
The property will be eligible for a fifty per cent discount to CGT as it’s been owned for longer than twelve months and a proportion will be exempt calculated on the percentage the property was used as a primary place of residence.
Capital gains tax is calculated based on the cost base when you first purchased the property.
As we only specialise on CGT as directly related to depreciation, we recommend consulting an accountant or financial adviser to calculate a potential CGT liability.
Thanks,
The BMT Team

By: The BMT Team

The BMT Team — Thu, 22 Jun 2023 00:08:57 +0000

Hi Louise,

The property will be eligible for a fifty per cent discount to CGT as it’s been owned for longer than twelve months and a proportion will be exempt calculated on the percentage the property was used as a primary place of residence.

As we only specialise on CGT as directly related to depreciation, we recommend consulting an accountant or financial adviser for advice specific to your scenario.

Thanks,
The BMT Team.

By: Louise

Louise — Wed, 21 Jun 2023 20:30:34 +0000

Hi,
We purchased our home in Dec 1999 lived in it until June 2013. We moved for work and rented out our home and now want to sell. I realise we will have some sort of CGT but is there any reduction as it was our home first?

By: The BMT Team

The BMT Team — Tue, 30 May 2023 05:46:34 +0000

Hi Brie,

As we only specialise on CGT as directly related to depreciation, we recommend consulting an accountant or financial adviser for advice specific to your scenario.

Thanks,
The BMT Team.

By: Brie

Brie — Wed, 24 May 2023 07:26:17 +0000

Hello,
I purchased a property in April 2015. I lived in it for 11 months, then rented it out from March 2016 – May 2023 (7 years). Its now just on the market for sale. Am I exempt from any CGT?

Many thanks!
Brie