Selling properties

Discussion in 'The Buying & Selling Process' started by Tink, 26th Aug, 2018.

Join Australia's most dynamic and respected property investment community
  1. Tink

    Tink Well-Known Member

    Joined:
    3rd Aug, 2015
    Posts:
    156
    Location:
    Australia
    When selling multiple properties obviously its better to space out over several financial years

    If there is a property with a loss, are you better off selling that one first, that way you can off set the loss with a gain on another that year or in other years (a loss then a gain rather than a gain then a loss)

    We also have an IP that was our initial investment and we continually took equity out to move forward, this on will have a cap gain (purchase $100k in 2000 now sell in 2018 for $300k or so) , however with property prices in WA having fallen there wont be a heck of a lot of cash left after selling - We will need to look at what can be done to reduce CGT on that one
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,103
    Location:
    Sydney or NSW or Australia
    Capital losses can be carried forward and may be offset against future capital gains, tax has to be paid on capital gains but can't be traded against losses in future years.
     
    Tink likes this.
  3. JDM

    JDM Well-Known Member

    Joined:
    19th Jan, 2016
    Posts:
    465
    Location:
    Brisbane
    Sell the property with a capital loss and then offset this against capital gains in the same financial year or carry forward to future years
     
    Tink and Codie like this.
  4. Tink

    Tink Well-Known Member

    Joined:
    3rd Aug, 2015
    Posts:
    156
    Location:
    Australia
    Haven't sold anything for a while, whats the best plan re: tenants etc

    Continuing to receive rental income right up until the property sells seems essential and who knows another investor may purchase

    Does anyone offer any reductions or incentives to tenants to ensure property is kept clean/tidy/well presented whilst this process unfolds?

    If you’ve got a tenant there on a lease, you potentially eliminate an owner-occupier purchaser

    Any thoughts or tips?
     
  5. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,675
    Location:
    Australia wide
    You will also need to consider the impact on deductibility of interest if other loans secured by this property are paid out as part of the discharge of mortgage.