Capital Gains Tax - moving into a former rental property

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dgirl
Posts: 6
Joined: Mon Jun 04, 2012 5:44 pm

Capital Gains Tax - moving into a former rental property

Post by dgirl »

Hi,

I'm trying to get my head around CGT.

Can someone please use the sample figures below to explain the CGT calculations involved in moving into an investment property which then becomes your primary residence?

Not sure if all the figures are needed in calc, but including it just in case:

Purchase date 1 Sept 2012
Purchase price $500,000
Closing costs $35,000
$400,000 30 year mortgage @ 7.0% is $613.72 per week
Income $75,000
Rent out for 2 years @ $450 per week
Re-evaluation 1 Sept 2014 $600,000
Move in that day 1 Sept 2014 - now primary residence
Sell Sept 2020 $1,000,000

Assume CGT rules and tax brackets and percentages remain the same throughout the life of the example.

Thanks.

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Isma Khan
Mortgage Specialist
Posts: 45
Joined: Thu Feb 23, 2012 3:48 pm
Location: Sydney, Australia
Contact:

Re: Capital Gains Tax - moving into a former rental property

Post by Isma Khan »

Hi There,

I think it'll be best if you contact your accountant to work out these figures for you.

Regards,

Isma Khan
Mortgage Broker
Ph: 1300 889 743
Home Loan Experts
Isma Khan
Senior Mortgage Broker
Ph: 1300 889 743
The Home Loan Experts

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