Cgt for foreign residents

[#1]

I know that from July 2020, foreign residents will no longer be able to apply 6-year exemption rule, so if I sell or transfer my former home in Sydney, will I be taxed on the capital gain based on the original purchase price, or the market value when it was first rented out?

And how many months will a valuation report valid for? I mean if I am going to transer title on June, when is the earliest time I can get the valuation report? Can I use the same report for stamp duty evaluation for cgt?

Thank you so much!

[#2 · Accepted solution]

@Miamia 

will I be taxed on the capital gain based on the original purchase price, or the market value when it was first rented out?

Market Value when it was first rented out.

And how many months will a valuation report valid for? I mean if I am going to transfer title on June when is the earliest time I can get the valuation report? Can I use the same report for stamp duty evaluation for CGT?

Sorry but no idea, a Market valuation should be done as per

Preferably not by the same agent that will sell your home.

Also, seek advice from a Tax professional as they could save you thousands as CGT calc is quite complex and incorrectly determining it is easy.

[#3]

Sure thanks! You are so kind to answer all my questions!

Could you clarify the first question, even I sell after July 2020 as foreign resident, the cgt is still calculated based on the market value when rented out?

I will surely engage a tax agent if I sell or transfer the property, are you a tax agent or ATO staff? Can I engage you? Thank you!

[#4]

@Miamia 

Could you clarify the first question, even I sell after July 2020 as foreign resident, the cgt is still calculated based on the market value when rented out?

No, unfortunately, it is not

A little light reading for you

https://taxbanter.com.au/banter-blog/draconian-cgt-mre-changes-become-a-reality/

If you can't sell it before it, it may pay to leave it and come back in the future when you are once more considered to be an Australian resident for tax purposes.

Yes, I am a Tax professional and I don't work for the ATO.