Capital Gains Tax – does it affect you?
For those of us that live in and own our own homes or have additional rental properties, consideration of capital gains tax or any of the exemptions available will be required if one day you look to sell or move out of your home.
This area can be a little confusing with regard to knowing what you are entitled to or if your living situation has any effect on the tax you may have to pay if you do in fact sell and make a profit on what you originally purchased the property for.
There are several factors to consider that may effect your capital gains tax exposure or exemptions particularly if you are:
Treating a property (family home) as your ‘main residence’ after you move out
- Renting out your principal place of residence (family home) for a period of time
- Moving into your rental property
- Selling your principal place of residence
- Selling your rental property .
Consideration of your possible capital gains tax exposure if any of the above circumstances apply to you is essential to ensure you don’t miss out on any of the exemptions or discounts that the ATO have made available for home owners. It is also encouraged to do this just so you are not met with any unwanted tax surprises when you do one day sell your property. Strategy and planning is key!
If you need any assistance or would like to discuss your situation and options in relation to CGT, please don’t hesitate to contact us.