Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

I own a property in Australia where I plan to live in future. How will capital gains tax (CGT) apply to me when I eventually sell?

April 26, 2017Australia capital gains cgt eventually future live Plan Property tax

0

Posted

I own a property in Australia where I plan to live in future. How will capital gains tax (CGT) apply to me when I eventually sell?

1 Answer

0

Posted

Under Australian tax law, Capital Gains Tax is payable on the capital gain realised when you sell an investment property. However, there is an exemption for properties that are deemed to be your “Principal Place of Residence”. Where the use of a property has been spread between an investment property and your Principal Place of Residence, in general any tax will be assessed on a pro rata basis. For example, if you buy an investment property and rent it out for 4 years, then live in the property for a further 6 years, when you sell you CGT will be assessed on 40% of the capital gain. This is a very basic overview. There are a number of variations which can save you a significant amount in tax. Please talk to a KlearPicture consultant to discuss your specific situation.