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Re: Gain on overseas residential property taxable?

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Newbie

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Replies 4

HI,

Could someone please advise me on the followings:-

I have a residential property in overseas before migrating to Australia. My parent used to live in the property and now they have passed away, I intend to sell it and will result in a gain based on my purchase price.

Questions:-

1. Will the gain on disposal subject to tax in Australia?

2. If taxable, how to calculate my gain - do I compare the selling price now against the market value when I become Australia PR or the original purchase cost?

3. It is under joint name with my wife, if it is taxable, is it assessed separately?

 

 

 

 

 

 

1 ACCEPTED SOLUTION

Accepted Solutions
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Taxicorn

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@ivan9180 

 

(1) Yes if you are an Australian Resident for tax purposes and you own another main residence.

(2) Calculating CGT is complicated and you will need to seek advice from a tax professionsl - However market value when you became an Australian Resident for tax purposes.

(3) Yes, 50% of the gain will be owed by each party if owned by joint tennacy.

 

 

4 REPLIES 4
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Best answer

Taxicorn

Replies 3

@ivan9180 

 

(1) Yes if you are an Australian Resident for tax purposes and you own another main residence.

(2) Calculating CGT is complicated and you will need to seek advice from a tax professionsl - However market value when you became an Australian Resident for tax purposes.

(3) Yes, 50% of the gain will be owed by each party if owned by joint tennacy.

 

 

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Newbie

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@macfanboy 

 

Thank you for the reply.

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ATO Certified

Community Support

Replies 1

Hi @Ivan1980

 

Firstly welcome to our community. Thanks to you to  @macfanboy  for some very succinct replies.

 

I have included below some links that you may wish to research yourself as well. If you have lived in more than one property as your main residence you will have an option to select which you apply the exemption too, meeting the eligibility rules of course. Ultimately it becomes a choice of where applying the main residence exemption will advantage you the most now or in a future sale of another property.

 

If you choose to engage a Tax Agent they will certainly be able to detail these options also.

 

Capital gains on overseas assets.

 

Treating a dwelling as your main residence after you move out

 

Joint ownership

 

Thanks for your queries Ivan.

Regards

MarkA

 

 

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Newbie

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@MarkATO 

 

Thank you so much.