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cliffs

Capital Gains on house sale

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Hi All

 

I have read on a few threads about capital gains and am in need of some clarification.

 

I will be going to Australia on a 457 and will be letting my house for 6 months until the spring and hopefully a better market then putting it back up for sale. as i understand on a 457 visa i will not have to pay tax on any income from the rental or the house sale if i do sell it.

 

however my 176 visa hopefully is not that far away and this is where the clarification is needed. As i understand the income from my rental will be taxable from the date i activate my 176 visa and also i should get a base valuation of my house for capital gains reasons and if the house sells for more i pay tax on the profit, if it sells for less i can offset this from my income tax.

 

thanks

Martin

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That all looks dodgy to me.

 

You are liable for tax on rental income from day one - the only detail is where you pay it (or have to account for losses). Think it normally works that you pay tax where you are resident, but could be wrong about a 457. Do a search for posts on tax by Alan Collett - he has linked a tax factsheet that is really useful.

 

As for CGT, firstly it is not income tax, hence losses are NOT deductable against income tax. If your house price goes down, the tax man gets nothing, if it goes up you pay tax on the profit as you said.

 

Check out the factsheet, or do a search - it is a common question on here as you can imagine.

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