Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
Mick1752(Newbie)Newbie
30 Oct 2023

Hi,


I have owned a property overseas for 15 years (bought 2006). I became a permanent resident of australia in 2011 and a citizen in 2014. The house is declared for tax purposes here, but now I want to sell it and bring the proceeds into Australia. I am not able to determine what the potential Capatal Gains Tax is (if any)


When I became a permanent resident, the Global finanical crisis had hit and my house was worth 50% of what I paid for it 5 years earlier. It is worth more than that now, but it looks as though it will sell for a little less than I paid for it in 2006.


If I am making a loss overall, will I still owe CGT due to the potential value when I became a resident?

1,717 views
1 replies
1,717 views
1 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
31 Oct 2023

Hi @Mick1752


You only pay tax on capital gains. If you make a capital loss, you'd use it to reduce any capital gains you make. If you can't use it straight away you'll carry if forward to future years until you can.


So, what you'd need to do is work out your cost base. If you qualified to be a temporary tax resident when you first arrived then the market value when you got your PR would form part of your cost base, assuming you were also an Australian tax resident at the time. Check out your guide to CGT and property for relevant info and links.

All replies

Most helpful reply

AriATO(Community Support)Community Support
31 Oct 2023

Hi @Mick1752


You only pay tax on capital gains. If you make a capital loss, you'd use it to reduce any capital gains you make. If you can't use it straight away you'll carry if forward to future years until you can.


So, what you'd need to do is work out your cost base. If you qualified to be a temporary tax resident when you first arrived then the market value when you got your PR would form part of your cost base, assuming you were also an Australian tax resident at the time. Check out your guide to CGT and property for relevant info and links.

Featured articles

How to work out your tax residency

15 Apr 2026 · 8 min read time

Finding your TFN

6 Feb 2026 · 4 min read time

Linking your myGov account to the ATO

24 Aug 2025 · 3 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3283 likes

  2. Taxduck

    (Taxicorn)

    2100 likes

  3. PayrollDeanne

    (Taxicorn)

    845 likes

  4. YellowPotato

    (Taxicorn)

    545 likes

  5. knaresbro

    (Devotee)

    368 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10436contributions

  2. Taxduck

    (Taxicorn)

    4806contributions

  3. PayrollDeanne

    (Taxicorn)

    2094contributions

  4. YellowPotato

    (Taxicorn)

    1381contributions

  5. YEP

    (Devotee)

    837contributions

Loading
Sale of overseas property at a loss | ATO Community