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Re: CGT for overseas property

Newbie

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Replies 3

Hi, I Bought property in 2013 as principal place of residence in Hong Kong. My wife got RRV visa and plan move to live in Australia with family in coming June. I plan to apply Partner VISA and plan to buy another property in Australia and live in there with family. We would like to out HK property to earn income. If I sell my property in Hong Kong few years later, I understand that I need to pay CGT. However, what is the cost value of the property for work out my capital gain or loss? Purchase price or base on the market value of the property on the date we move to Austraila? If use the market value on the date we come to Austraila, how to prove the market value?

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee Registered Tax Practitioner

Replies 0

For sworn valuation, which one will be accepted:

1. get offcial valuation from Hongkong's surveyor firm when I become Australian resident.

2. get the valuation from Hongkong's bank website and make affirmation in Australian.

 

Bank website would not be likely to be accepted  -  you need a valuation from, say, a licensed property valuer or from a real estate agent who will support their valuation with data about recent sales of similar properties.

 

3 REPLIES 3

Devotee Registered Tax Practitioner

Replies 2

 However, what is the cost value of the property for work out my capital gain or loss? Purchase price or base on the market value of the property on the date we move to Austraila?

 

When you become an Australian resident (other than a temporary resident), you're taken to have acquired certain assets at the time you became a resident for their market value at that time.

This does not apply to assets you acquired before 20 September 1985 (pre-CGT assets) and assets that were taxable Australian property.

If you became a resident, the general cost base rules apply to any capital gains tax assets that are taxable Australian property.

https://www.ato.gov.au/general/capital-gains-tax/international-issues/changing-residency/

 

If use the market value on the date we come to Austraila, how to prove the market value?

 

Get a sworn valuation.

 

Newbie

Replies 1

Hi Burce,

 

Thank you for your reply.

 

For sworn valuation, which one will be accepted:

1. get offcial valuation from Hongkong's surveyor firm when I become Australian resident.

2. get the valuation from Hongkong's bank website and make affirmation in Australian.

 

Most helpful response

Devotee Registered Tax Practitioner

Replies 0

For sworn valuation, which one will be accepted:

1. get offcial valuation from Hongkong's surveyor firm when I become Australian resident.

2. get the valuation from Hongkong's bank website and make affirmation in Australian.

 

Bank website would not be likely to be accepted  -  you need a valuation from, say, a licensed property valuer or from a real estate agent who will support their valuation with data about recent sales of similar properties.