CGT

Discussion in 'Accounting & Tax' started by Ria, 1st May, 2020.

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  1. Ria

    Ria Active Member

    Joined:
    19th Feb, 2018
    Posts:
    38
    Location:
    Melbourne
    Hi everyone,

    I hope everyone is doing well. I have a question regarding CGT, I will be really grateful if someone can help me with it.

    I lived in house A for 6 and half years, which is jointly owned by me and my ex partner. We suppose to sell this house before july 2020 as per family court consent orders. I moved out from House A (joint home) to House B (which was my investment property) in Jan, 2020. House B is now my residence from last 4 months.

    Will I be paying CGT on house A? I thought i would be exempt bcoz it was my principle home. Im not sure how it will be work if we couldn't sell house A for next 6 months or so?

    Any suggestions will be highly appreciated.

    Thank you
     
  2. Mike A

    Mike A Accountant Business Member

    Joined:
    24th Jun, 2015
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    2,252
    Location:
    MELBOURNE
    Look into the cgt rules re seperation
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

    Joined:
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    30,812
    Location:
    Australia wide
    If it was your main residence for the whole period and all the other requirements are met then prob no CGT, but even if it wasn't there may be exemptions as MikeA alludes to. You should get specific advice.
     
  4. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,067
    Location:
    Sydney
    Many potential concessions here. I wouldnt be too worried and it would be wise to focus on selling it and seek personal tax advice. Some ways to address any possible tax concerns :

    - Seperation rules and court orders
    - Absence
    - 6 month rule overlap rule
    - Exempt main residence
    - costbase incl selling costs and pro-rata in the worst case
    and even more.

    Both parties likely have same or even different CGT positions concerning each share.