5 things to consider when selling your Investment Property

If you’re considering selling your investment property, there are a few factors to keep in mind regarding your Capital Gains Tax obligations.

#1  Capital Gain is considered the difference between your cost base (costs of ownership) and your capital proceeds. A number of costs can reduce your capital proceeds calculation.

#2 If you own the property personally for more than twelve months, you will be entitled to a 50% discount on the tax payable.

#3 You must exclude from the cost base of the property, the amount of capital works deductions you have claimed in prior years in respect of the asset.

#4 Co-ownership of a property will mean the capital gains tax is apportioned between all owners.

#5 Capital Gains Tax may be required to be paid on your main residence (personal home) if you have rented it out at any stage during ownership and/or your holiday home.

As every individual’s financial situation is different, we encourage you to get further assistance on your investment tax obligations.

What are you waiting for? Call one of our local, expert Tax Accountants today…

Torquay (03) 5261 2262
Winchelsea (03) 5267 2673