Rainman Posted July 30, 2015 Share Posted July 30, 2015 Can anyone explain CGT that's payable on a house sale that has also been used to run a small business from home? Is CGT still payable if the assessable amount earned has not reached the taxable income limit? I understand CGT is calculated on the floor area that has been used for running a business from home but if this area is also a liveable area of the house i.e a dining room is CGT still payable? Seems unfair to be taxed on the profit on a house sale just because it was more convenient to conduct a (very) small business from home than having to pay for childcare while out working. Especially as the CGT will most likely work out to be more than the total profit made through working from home. Link to comment Share on other sites More sharing options...
MARYROSE02 Posted July 30, 2015 Share Posted July 30, 2015 Can anyone explain CGT that's payable on a house sale that has also been used to run a small business from home? Is CGT still payable if the assessable amount earned has not reached the taxable income limit? I understand CGT is calculated on the floor area that has been used for running a business from home but if this area is also a liveable area of the house i.e a dining room is CGT still payable? Seems unfair to be taxed on the profit on a house sale just because it was more convenient to conduct a (very) small business from home than having to pay for childcare while out working. Especially as the CGT will most likely work out to be more than the total profit made through working from home. You really need a tax agent, and I'm not going to recommend one to you, but you could start looking at what H & R Block offer as they are OZ-wide. (I have my own accountant in Sydney, and I have no interest in H & R Block.) Or you could contact the ATO. http://www.hrblock.com.au/lp/au/fy15/retail?otppartnerid=9201&campaignid=ps_mcm_au_9201_2021&omnisource=GGL|CAMP032AU-R-TAG-Tax Agent-G-Desktop-BMM|ADGP009Tax Agent|KWRD007Control&Keyword Link to comment Share on other sites More sharing options...
Bungo Posted July 30, 2015 Share Posted July 30, 2015 I agree that you should use a tax accountant. As to whether it is fair, well presumably you have been happy to take an income tax benefit for a portion of your housing costs on the basis that it was business premises? In which case, if there is anything due, it would seem perfectly fair.. if you have not done that, well I wouldn't feel obliged to declare this now either. By the way, for future tax planning, this is why it isn't necessarily a great idea to deem part of your main residence as business premises. Link to comment Share on other sites More sharing options...
Rainman Posted July 30, 2015 Author Share Posted July 30, 2015 I agree that you should use a tax accountant. As to whether it is fair, well presumably you have been happy to take an income tax benefit for a portion of your housing costs on the basis that it was business premises? In which case, if there is anything due, it would seem perfectly fair.. if you have not done that, well I wouldn't feel obliged to declare this now either. By the way, for future tax planning, this is why it isn't necessarily a great idea to deem part of your main residence as business premises. The only things we did claim for was power and telephone, though because the assessable income was under the taxable income threshold we didn't get a rebate anyway. It seems we were wrongly advised that as long as we didn't claim for a percentage of the house area that was used we wouldn't be liable for CGT. We will be seeing a Tax Accountant. What started off as a means of making a bit of extra cash from a hobby may well turn out to be an expensive mistake. Link to comment Share on other sites More sharing options...
Mimi Yuen Tax Agent Posted August 27, 2015 Share Posted August 27, 2015 Hi Rainman, Just checking to see if you received appropriate assistance with your query If not, happy to help. Cheers, Mimi Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted August 27, 2015 Share Posted August 27, 2015 Hi Rainman, Just checking to see if you received appropriate assistance with your query If not, happy to help. Cheers, Mimi Thank you @Mimi Yuen Tax Agent I have asked Mimi to join us and help members with their tax and accounting queries. Link to comment Share on other sites More sharing options...
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