Im selling an investment propertyin victoria, australia. How can i reduce capital gains tax when i sell it?
July 7, 2009 by admin
Filed under Questions and Answers
I have never lived in the property and I did purchase it close to the end of 1989. What capital losses can be claimed on investment property and anything else(deductions?) to lower the cgt im liable to pay upon selling it?
I know I can reduce to cgt because Ive owned the property for more than 12 months.
Is my income also taken into account when calculating cgt?
Smiley on Tue, 7th Jul 2009 2:08 am
The amount you paid for the property (including legals, stamp duty) and incidental costs of sale (legal fees, real estate agent fees etc) is subtracted from the sale price. There are examples here http://www.ato.gov.au/print.asp?doc=/Content/36902.htm.
CGT is not a separate tax – you calculate the amount of the capital gain (capital proceeds less cost base, then divide by 2 assuming you are eligible for the 50% CGT discount for holding the property for more than 12 months), and you add this to your other income (eg salary)