Catching Up On Capital Gains
Capital Gains Tax is a topic that even if not current for you, is often at the back of your mind when dealing with property investment so here is some information that may be of help to you.
Rent out your house and avoid Capital Gains Tax was an article written by Sarah Mills for Money.ninemsn.com and below is a quote from that article.
“As a rule of thumb, a few simple rules apply:
· The house in question must be your main dwelling to be exempt from CGT. In other words, you cannot own another property and live in that for a few years, then move back and forth between that and your main residence and avoid CGT on both properties.
· Generally, if you bought a house after August 20, 1996, you must have lived in it when you first bought it (as opposed to having rented it out) to be entitled to a full exemption. This comes under the “Home first-used to produce income” rule…………………………………………..
Beyond this point it all gets a bit complicated and depends on the individual’s circumstances, how many properties they own and how frequently they move…………………………….”
The full article can be read at http://money.ninemsn.com.au/article.aspx?id=257250
Also here is a link that will take you to a calculator for working out Capital Gains Tax: http://www.yourmortgage.com.au/calculators/capital_gains_tax/
Filed Under: Tax Tips
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