Is this a CGT Event I1?
Is my foreign property now non-taxable Australian property and as a now 'foreign resident' my property is exempt from an exit tax?
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Hi @Curious101
Yes your overseas property is subject to Australian capital gains tax.
There are 2 options for you when your residency changes from a tax resident to a non-resident.
- You can choose deemed disposal which you know as exit tax. This means CGT event I1 happens and you'll work out CGT based on the market value of your property on the day your residency changes and declare it in your Australian tax return for that financial year.
- You can ignore CGT and your overseas property becomes taxable Australian property. CGT event A1 will happen when you physically sell or when you're no longer the owner. You'd need to complete an Australian tax return.
Check out how changing residency affects CGT which covers the above.
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Hi @Curious101
Yes your overseas property is subject to Australian capital gains tax.
There are 2 options for you when your residency changes from a tax resident to a non-resident.
- You can choose deemed disposal which you know as exit tax. This means CGT event I1 happens and you'll work out CGT based on the market value of your property on the day your residency changes and declare it in your Australian tax return for that financial year.
- You can ignore CGT and your overseas property becomes taxable Australian property. CGT event A1 will happen when you physically sell or when you're no longer the owner. You'd need to complete an Australian tax return.
Check out how changing residency affects CGT which covers the above.
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