|
Disclaimer:
· Yahoo! does not endorse or vouch for the accuracy or authenticity of postings.
· Messages should be considered at best general information, not professional investment advice.
· You are personally responsible for your messages.
· You should not include any misleading or deceptive information in your messages and not carry out illegal or unauthorised activities using the Yahoo! Finance boards.
· Information in messages may, where appropriate, be made available to ASIC.
· If Yahoo! finds or reasonably suspects that you are making illegal or unauthorised messages, your right to make messages will be withdrawn. Please click here to read the entire disclaimer information before viewing or posting messages |
 Re:Calculating CGT from home and rental
|
<< Previous page | 1 | Next page >> |
By: jasonwaroo
3/02/2009
11:58 am Yahoo! Profile:
jasonwaroo Did this message offend you?
Sign in to report abuse |
Reply to this message |
You have gone over the 6 year rule so even if you shifted back into the property you would still pay some CGT on the property when you sell it.
However you will get a part exemption for the CGT. If you have owned the property for 17 years as you stated and for 10 of those years you lived in it; then you will get an exemption for those 10 of 17 years.
Essentially the calcuation would be 356 days in a year times 17 years 6205 you owned the property. If in 17 years you for example made a $500,000 profit from selling the home, you would divide $500,000 by 6205 or $80.58 per day value of your property increasing per day.
Out of the 6205 days you owned the property it was earning an income for 7 years or 2555 days; multiple this by the $80.58 for $205,882 of your profit would be exposed to CGT. You would then apply your 50% CGT discount for owning over 12 months, so roughly $102,940 would need to be included in your yearly tax return with incoem tax payable on this amount.
Hope that helps. |
|
By: ecchi.gaijin
30/01/2009
5:09 pm Yahoo! Profile:
ecchi.gaijin Did this message offend you?
Sign in to report abuse |
Reply to this message |
"If we chose to move back in, how long would we need to live there before we cancel the CGT owing?"
You have gone past the 6 year window so it is unlikely that you will be able to avoid paying tax on any capital gains.
From what I can find on the ATO website, it appears that you need to apportion the capital gain based on what percentage of time the home was used to income producing.
Try reading the follwoing links and there is also a calculator that may be useful.
http://www.ato.gov.au/individuals/content.asp?doc= /content/36887.htm
http://calculators.ato.gov.au/scripts/axos/axos.as p?CONTEXT=&KBS=CGT_and_real_property.XR4&go=ok
As always beware of the gaps in the URL |
|
By: damo.robo
30/01/2009
2:53 pm Yahoo! Profile:
damo.robo Did this message offend you?
Sign in to report abuse |
Reply to this message |
Hi all, thanks for your time.
My wife and I have been renting our property for 7 years that had previously been our family home for 10 years. We are thinking of selling but are having trouble calculating the possible CGT we'd be up for if we do so.
Do we calculate the CGT from the value of the property when we purchased or from when we started renting it out?
Is the whole increase in value for this period taxable?
If we chose to move back in, how long would we need to live there before we cancel the CGT owing?
Regards |
|
|
<< Previous page | 1 | Next page >> |
|
