Browse Forums General Discussion 1 Sep 17, 2009 2:02 pm Could anyone clarify for me.... When you sell a property and make a profit on it, you pay capital gains tax right? (from memory that's what we did when I sold a block of land years ago) So - if you do repairs, renovations etc ot your property before you sell, can you claim those against your capital gains tax bill come tax return time? In other words, should I be keeping all receipts of things we're buying to fix this place up for sale for my next year's tax return?? Cheers Caz Caz & Co ALL MOVED IN!! Now comes all the hard work-decorating.... [b]Blog: http://cazoraz.blogspot.com/ Settling in Thread: viewtopic.php?f=31&t=36993 Re: Home improvements and capital gains tax.... 2Sep 17, 2009 2:07 pm I am not an expert but my understanding is that the family home is not subject to Capital Gains Tax. Any other property, would be subject, but please do not take my word as gospel. I suggest you check the ATO website for information like this: Quote: Selling your home Overview Generally, if you are an individual – not a company or trust – you can ignore a capital gain or capital loss from a capital gains tax (CGT) event that happens to a dwelling that is your main residence (also referred to as 'your home'). To obtain full exemption from CGT: * the dwelling must have been your home for the whole period you owned it * the dwelling must not have been used to produce assessable income, and * any land on which the dwelling is situated must be two hectares or less. If you inherited a dwelling or a share of a dwelling and it was not the deceased’s main residence, you may not get full exemption (see Inheriting a dwelling). If you are not fully exempt, you may be partially exempt if: * the dwelling was your main residence during part of the period you owned it * you used the dwelling to produce assessable income, or * the land on which the dwelling is situated is more than two hectares. Short absences from your home – for example, annual holidays – do not affect your exemption. If a dwelling was not your main residence for the whole time you owned it, some special rules may entitle you to a full exemption or extend the part exemption you would otherwise get. These rules can apply to land or a dwelling if: * you choose to treat the dwelling as your main residence, even though you no longer live in it (see Treating a dwelling as your main residence after you move out) * you moved into the dwelling as soon as practicable after its purchase (see Moving into a dwelling) * you are changing main residences (see Moving into a dwelling) * you are yet to live in the dwelling but will do so as soon as practicable after it is constructed, repaired or renovated and you will continue to live in it for at least three months (see Treating land as your main residence), or * you sell vacant land after your main residence is accidentally destroyed (see Treating land as your main residence). Source ATO website. Adrian B Re: Home improvements and capital gains tax.... 3Sep 17, 2009 2:19 pm of course you're right! i forgot the whole primary residence thing. awesome, thanks Adrian! Caz & Co ALL MOVED IN!! Now comes all the hard work-decorating.... [b]Blog: http://cazoraz.blogspot.com/ Settling in Thread: viewtopic.php?f=31&t=36993 Re: Home improvements and capital gains tax.... 4Sep 17, 2009 2:23 pm That is right. You can do anything you want to the family home and it's will not be subject to CGT. Move out, rent it out, then sell it - now there's a different story (and a complicated one no doubt Blog is now up - http://www.jbdave.blogspot.com/ Re: Home improvements and capital gains tax.... 5Sep 17, 2009 5:03 pm jbdave That is right. You can do anything you want to the family home and it's will not be subject to CGT. Move out, rent it out, then sell it - now there's a different story (and a complicated one no doubt yeah i think that is why we decided to just sell it rather than rent it out... couldn't be bothered with the complications!! Caz & Co ALL MOVED IN!! Now comes all the hard work-decorating.... [b]Blog: http://cazoraz.blogspot.com/ Settling in Thread: viewtopic.php?f=31&t=36993 the exemption applies only to your principal place of residence - so you must live in it. The 200 days is continuous. You also have to apply for the exemption. 2 13318 If it's your primary residence then there is no tax deductions to be made. 4 125288 We already paid for somfy motors for the blinds. The quote above was purely for “pre-wiring” so the blinds company can install the motors and blinds. That’s why we… 5 16275 |