Capital Gains tax calculation help

Discussion in 'Accounting & Tax' started by simnatped, 13th Nov, 2016.

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  1. simnatped

    simnatped Member

    Joined:
    1st Jul, 2015
    Posts:
    15
    Location:
    Brisbane
    I turned my PPOR into an investment property almost 3 years ago and now plan to sell. It's a unit in Fortitude Valley Brisbane and the market has taken a big hit in the last year or so. I originally bought it for $227K in 2006 and lived in it for 8 years. When I refinanced to turn it into an investment it was valued by my bank at $330K. I'd be lucky to get $310K in today's market.

    On the surface it looks like I'll make a capital loss if I sell now, is this correct?
    How do the deductions I've made at tax time using a depreciation report affect this figure?

    Also do you reckon loans.com.au are likely to give me a copy of the valuation they did when I remortgaged from PPOR to investment? (I know I can ask them but thought someone here may know without me having to wait will the phones are open). Will an email from the bank noting the valuation figure and date be sufficient if the ATO came asking?

    Thank you!
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,555
    Location:
    Sydney
    Just noticed this lonely post. Depending on the QS deductions claimed you may have a capital loss. The total value of QS deductions you prev claimed will reduce the CGT loss dollar for dollar. After selling costs the loss may be larger.

    Need to weigh up its cost to hold (what does it cost you per week ?) and then adjust this for any tax benefits. Why sell ? There may be no reason to sell if its paying its way.
     
    Perthguy likes this.