# Category «Capital Gains Tax – Houses and Land with No Private Purpose»

## CGT calculation when Pre CGT Property passed between siblings

Question Taxpayer received 25% of a small rural property (1 and 2/3rd acres – not farmed) pre CGT via a family Estate. Subsequently – post CGT – taxpayer receives further proportions of the property via two further Deceased Estates. So by 1998 owns 100% of property. Her children live in that property from 1998 and …

## Adjusting for Plant and Equipment on Sale

Question Plant & Equipment QuestionI have purchased your Capital Gains Calculator which is helpful – thank you.Is the written down value of plant and equipment items purchased to prepare a rental property for sale included in the Div 40 balancing for the CGT calculation in the following scenario: Cleaning items to prepare the property for …

## All the Issues When You Subdivide a Rental

Question My wife and I purchased a house in December 2003 (purchase price \$220,000) as she had returned to full time work and we saw this as a long term investment that would offset her not having much in her superannuation fund at the time. The house has been rented continuously over these 20 years. …

## CGT Calculation When Not Rental and Not Home

Question In 2002 I bought a 3 bedroom house for my mother and father to live in. I paid \$260,000, plus legals and stamp duty. Dad died 15 years ago and my mother still lives in the house. I have never charged them rent. Over the years I have paid for capital improvements costing roughly …

## Improvements to a Pre-CGT Asset

Question How do I calculate CGT on the recent sale (Feb 2021) of an investment property? Property sold as two titles: Title 1 comprising house plus land 1 (area 124 sq. m.) Title 2 comprising (adjacent) land 2 (area 52 sq.m.) Sale price of two titles, sold as one: \$1,097,000.00 Expenses incurred: \$40,000 Purchase of …

## What Goes in the Cost Base and Tricks to Avoid CGT When Transferring to Family

Question Hello Julia Re: CGT – Allowable property expenses on family transfer I purchased a townhouse in Melbourne in 2014. A family member lives there ‘rent free’ The property has never been rented/leased. I live in a regional city in my own home. In June 2021 I transferred a half share of the Melb townhouse …

## Non-Resident Selling Australian Property and Contributing to Super

Question I am an Australian citizen living in India Bangalore for the last 5 years for family reasons. I am 64 years old and ceased full time employment in July 2016. I bought a house on 29/4/2004 for \$215000 as an investment property and rented it out and it was rented out throughout till I …

## Treatment of P&E in the CGT Calculation

Question I need your help to check whether I have included P&E items correctly in my CGT calculation. ATO is talking about balancing act. I want to legally reduce my capital gains. Many thanks Purchase Details: Purchase cost of CGT asset \$429,900.00 Add: Incidental costs to acquire the CGT asset \$5,973.75 Less: Plant & Equipment …

## Transferring an investment property on divorce

Question I own an investment property in Ballarat jointly with my ex partner (purchased 3 years ago), and part of the settlement arrangement is that I transfer the ownership to her 100%. What process is involved to implement this & is their stamp duty implications in doing so? Answer There is no CGT event for …

## Structure

Question I want to buy properties, subdivide them and then flip them for a profit. I want to do this continuously. Is setting up a private company the way to go?I have an accountant but want a second opinion. Say I purchase a property. In the P & L, is the purchases of property classified …

Have a question about tax you need answered?

Ask your own tax question here