澳洲Australia property Sell, buy from profit, tax implications?


在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m


Hi All

I am wondering, if I sell an IP, buy another from the profits, (but keep some profit also) what are the tax implications? I have 'heard' that you don' get charged CGT if you reinvest the profit - for a rough example...

Purchase price: 200,000
Sell price: 400,000
200,000 subject to CGT - however you then spend 100,000 on purchasing a New IP - so am I only liable so CGT on the remaining 100,000?

I know those figure are rough, but is the concept correct?  

评论
Been reading Rich Dad Poor Dad...?  

评论
Mooziepoo said: ↑
Hi All

I am wondering, if I sell an IP, buy another from the profits, (but keep some profit also) what are the tax implications? I have 'heard' that you don' get charged CGT if you reinvest the profit - for a rough example...

Purchase price: 200,000
Sell price: 400,000
200,000 subject to CGT - however you then spend 100,000 on purchasing a New IP - so am I only liable so CGT on the remaining 100,000?

I know those figure are rough, but is the concept correct?Click to expand...
No!

You will pay CGT on the whole profit (50 % discount if you've held asset for more than 12 months). Try to get your cost base as high as possible from purchase (include stamp duty, legals, Build/pest reports, travel to acquire if interstate, etc., etc).

Your concept (as V8 points out) is US based and, if I'm not mistaken, the asset where gains are re-invested in needs to be of a higher value than the one that was sold. There is also a time frame in which it needs to be done.

This tax treatment doesn't apply to Aussie investment property.  

评论
Thanks Player - I wondered what V8 was talking about! I did read that book yonks ago - maybe that's why the concept was in the back of my mind!!

Back to the drawing board for my evil plans it is then.....BWUHAHAHAAA.. :D  

评论
take a holiday in the same year you make your capital gain. your gain will be taxed at the nominal rate based on your income so it is the best time to reward yourself with a holiday, thats what i do! you might effectively be working for less money than its worth by the time you pay you tax bill, of course this depends on your individual situation  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...