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Beach10(Newbie)Newbie
18 Aug 2024

Hi,

I bought my unit on 20/12/2012 $540K and live in there for 7 months, it was my main residence. till 17/7/2013 rent it out. I moved back and live with my parents.


on 01/09/2019 I went to Uk travel and start working from 20/01/2020, and I still overseas at the moment, planning to move back in couple years.


I have lodge tax returns from 2020 to 2024 for the rental incomes as foreign tax resident .

I've sold my unit on 20/06/2024 for $800K while I still in UK


Want to find out the answers for the followings

  1. Should I take the value of the unit on 17/7/2013(the date became rental property) as the base cost?
  2. between 17/7/2013 to 20/01/2020, am I still eligible for the 50%CGT discount because I was a tax resident during that period?
  3. Am I eligible for the 50% CGT discount between 20/1/2020 to 20/06/2024 while I working in UK?
  4. please show me the calculations on how to work out my CGT, and do I need to have my unit valuated and on what dates?

Regards

Kent

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202 views
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Most helpful reply

Taxduck(Taxicorn)Taxicorn
18 Aug 2024

You are not eligible for the 50% discount as you were a foreign resident when you sold the property. There would be a discount percentage (but not 50%) due to the period when you were a tax resident. Link explains.

CGT discount for foreign residents | Australian Taxation Office (ato.gov.au)

Use the worksheet to calculate your CGT discount (hyperlink worksheet PDF222kb) at bottom of page.

Cost base for CGT calculation includes the following elements

Cost base of assets | Australian Taxation Office (ato.gov.au)

Element one (purchase price) will now be market value of property when first rented. (17/07/2013)

Using your home for rental or business | Australian Taxation Office (ato.gov.au)

Costs incurred before 17/07/2013 can not be included in the cost base

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Most helpful reply

Taxduck(Taxicorn)Taxicorn
18 Aug 2024

You are not eligible for the 50% discount as you were a foreign resident when you sold the property. There would be a discount percentage (but not 50%) due to the period when you were a tax resident. Link explains.

CGT discount for foreign residents | Australian Taxation Office (ato.gov.au)

Use the worksheet to calculate your CGT discount (hyperlink worksheet PDF222kb) at bottom of page.

Cost base for CGT calculation includes the following elements

Cost base of assets | Australian Taxation Office (ato.gov.au)

Element one (purchase price) will now be market value of property when first rented. (17/07/2013)

Using your home for rental or business | Australian Taxation Office (ato.gov.au)

Costs incurred before 17/07/2013 can not be included in the cost base

Beach10(Newbie)Newbie
20 Aug 2024

Hi

I tried to use the CGT discount worksheet to work out my CGT discount, when I left Australia on the 1/9/2019 I have no intention to work in UK, just for travel, and only decided to stay and work on the 20/01/2020.

my question is what should I put as the discount testing period end date, should that be the 1/9/2019 when I arrived in UK or the date I decided to stay and work in UK which is 20/01/2020?

Thanks

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