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CGT on property

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Newbie

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Hi all,

 

I'm after some information about calculating the CGT on the sale of a property. Property was first purchased in January 2013, the property was the main residence for the next 5 years and then rented out for 16 months until sold in early April this year. From what i have read, the main residence exemption applies for the 5 years it was lived in and so the capital gain should be calculated as the sale price (less costs) less the market value of the property at the time it was first rented out (December 2017), then apply the 50% discount method. Is this correct? and if so, how do i determine the market value at Decemeber 2017?

Thanks in advance.

 

 

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Taxicorn

Replies 2

Did you own another property whilst it was rented out?

 

Also read up on 3rd element costs they will save you some money.

 

https://www.ato.gov.au/General/Capital-gains-tax/Working-out-your-capital-gain-or-loss/Cost-base/Ele...

 

As for Market Value ask the real estate firm that you used to sell it to give you one.

 

3 REPLIES 3

Best answer

Taxicorn

Replies 2

Did you own another property whilst it was rented out?

 

Also read up on 3rd element costs they will save you some money.

 

https://www.ato.gov.au/General/Capital-gains-tax/Working-out-your-capital-gain-or-loss/Cost-base/Ele...

 

As for Market Value ask the real estate firm that you used to sell it to give you one.

 

Newbie

Replies 1

Yes, owned and lived in another property from the time first property was rented out.

 

Thanks for the other info.

 

 

Taxicorn

Replies 0

Remember cost of ownership includes interest on mortage, council rates, emergency service levy, wate rates, repairs, insurance premiums for the time you were living there..you could claim fuel for the lawn mower even.....

 

Best to see an expert to work out an increased cost base to lessen the CGT.

 

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