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Capital gains tax


Guest OzScouser

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Guest OzScouser

Hi All,

 

I've been doing a bit of research into capital gains tax on a house purchase over here.

 

I bought a place off the plan in November 2009. I then settled on the place in May 2011.

 

I was wondering if capital gains tax would be calculated based on the purchase or settlement date?

 

If anybody can clear this up for me I would really appreciate it.

 

Thanks :biggrin:

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Guest webster

Just checking that you are never going to live in the property.

 

You are not subject to capital gains tax on a house you live in, and you may be eligible for a partial exemption for CGT if you lived in the house for a period then rented it out. Lots of little rules.....

 

Here is a link to the CGT section with the ato http://www.ato.gov.au/corporate/content.aspx?doc=/content/00208572.htm&page=22&H22

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Guest OzScouser

Hi Webster,

 

Thanks for taking the time to reply.

 

The situation is I bought the unit in October 2009, it was completed, and I signed the contract in May 2011 (purchase date). This is where we live now. We are looking to move back to the UK but people have warned me about selling the house less than 12 months after purchasing it and suggested I would have to pay capital gains on it. Our plan is to sell it in March/April (maybe May) next year, before returning to the UK.

 

Thanks for the link. I will have a look through the info.

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Guest webster

HI again ozscouser,

 

I should have specified in my last response that there are many specific variations in deciding whether you are going to be subject to CGT, e.g. are you a resident for tax purposes, do you have another residence in the UK that you claiming as a primary place of residence, the list goes on. You can always call the ato customer service line if their website does not answer your question.

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  • 4 weeks later...

Hi Webster,

 

Do I need to pay capital gain tax if I brought a off the plan property. I am non Australian. If yes, how am I going to minimize my capital gain tax. Thank.

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