Capital Gain Tax

jshubo

A buy property in 2010 for 500k for investment
After the tenant move out in 2012, the market value for the house is 600k
A then did a major renovation/extension cost 200k and move in to live there until 2015
A sold the property in 2015 for 900k.

How much CGT A need to pay?

I believe if there is no renovation/extension cost, the the capital gain is (900k - 500k)* 2 year/5 years, but with renovation/extension, not sure what's the correct figure.

Any expert advice?

tony_wang99

有2012年的估计吗？ 有的话，100K啊。 但是你2012年以后不能用这个退税哦。

Pandaroo

帮顶

jeff_lawsons

The taxable capital gain will be worked out on a time basis, ie, the period during which the property is rented over the entire ownership period (see s118-185).

The market valuation prior to renovation has no bearing on the method of the CGT calculations. The situation would be different if the property was initially used as the main residence and was subsequently rented out, then you would need to obtain a market valuation just before it is rented out. This market value would be the new cost base for CGT purposes: s118-192.

In your situation, your cost base of the property would be $500K plus $200K minus any Div 43 deductions claimed. You will then need to do some time basis apportion as you can get partial main residence exemption.

jshubo

let's assume there was no Div 43 claimed during 2010-2012, then the capital gain would be the following then.

(900k-500k-200k) * 2 year/5 years

correct?

jeff_lawsons

jshubo 发表于 2016-1-21 17:26
let's assume there was no Div 43 claimed during 2010-2012, then the capital gain would be the follow ...

Yes, 50% general CGT discount shall be available if the property was bought by a resident individual.