Questions of CGT and property ownership

Discussion in 'Accounting & Tax' started by Matche, 9th Aug, 2018.

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  1. Matche

    Matche Active Member

    Joined:
    2nd Mar, 2016
    Posts:
    31
    Location:
    Sydney
    I am not sure that is the right forum to post these questions. I am considering to sell my investment property, I lived there for 1.5 years and moved out.

    Key dates:
    Nov 2013: Signed contract and bought off the plan at $320k
    Dec 2015: Settled, moved in as owner-occupied
    Aug 2017: Moved out and moved to another property (I own it as well)
    Sep 2017 until now: Rented out (start having rental income)

    I have few questions:
    1. Do I need to pay CGT, if I make any profit by selling it?
    2. Assuming I need to pay CGT, based on the ATO website, I need to find out the "Value of home when first used to produce income". I believe it's the market value on Sep 2017. I have an idea on how much it cost, which is based on the selling history of similar properties around that time. The estimate from domain or other online website shows that it's around $400k, who can prove the amount is correct? Is it by solicitor? Or just simply a figure I suggest? On the other page of ATO, it says"person without formal valuation qualifications whose assessment is based on reasonably objective and supportable data", does that mean anyone can make up a number?
    3. The property is jointly owned by me and my partner. My partner doesn't have income, can I transfer my ownership to my partner? In case we need to pay CGT, all the tax will be calculated based on his taxable, which has a much lower tax rate. Is it allowed/legal to do that?
    4. Usually who can help to change the property ownership?

    Thank you for any help!
     
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    1. probably not, but ...
    2. valuer
    3. yes, but CGT event
    4. lawyer or conveyancer in some states.
     
  3. Mike A

    Mike A Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    2,656
    Location:
    UNIVERSE
    Might be able to use the six year absence provision for both of you if you both lived there.

    If you lived in another property you owned that property will however be subject to cgt so worth doing the sums
     

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