Beware Of CGT
Are you thinking about selling an investment property? Don’t forget to factor in Capital Gains Tax (CGT).
CGT is generally payable if the property has been tenanted, inherited, received as a gift or won as a prize and it is not your main residence. CGT is paid on your net capital gain at your marginal tax rate.
Your net capital gain is: Your total capital gains minus your total capital losses (including any unapplied net capital losses from previous years), minus any CGT discount and CGT small business concessions.
There are ways to reduce your liability by offsetting your capital losses that can be discussed with your accountant.