CGT question

Chthonic on 01/07/2015 - 10:25

Hi all,

Bit of a strange one here and I'm wondering whether I can use this in my 2014-2015 tax return.

I have a property that was bought with my now ex. It's been sitting there for the entire 2014-2015 FY and has lost about $18,000 worth of value on the mortgage (with no one living in it) and has yet to be sold.

Is this something I can claim as a capital gains loss?

I understand no one can give financial advice and I just want to know whether it's worth seeing an accountant or not or if I'm just wasting my time and whether I should lodge it normally (my tax returns are always pretty straight forward).

Cheers

Financial

Comments

  • ESEMCE on 01/07/2015 - 10:50
    +1

    Not unless you bought it as an investment rental or you can argue that you've been "renovating" to rent..
    But to do that you'd probably need to actually rent it out at some stage.

    If you bought it to live in, then it's not an investment and not subject to Capital Gains (or losses)

  • suti on 01/07/2015 - 10:50
    +4

    No as it has yet to be sold.

  • Chthonic on 01/07/2015 - 11:03

    Thanks, that's good to know.

  • tooblue on 01/07/2015 - 12:50

    You are already too late to ask the question.

    My understanding is as long as you purchased it as an investment property, you can claim the expense provided you have income from this property. You could've rented it to a backpacker or holiday goer for one day or one week. In a normal way you cannot change anyting in past FY. But I don't know how to prove rental income if the tenant pays cash.

  • chazfg on 01/07/2015 - 13:07

    Check with your accountant first. IF you sell the house, you can only claim capital loss against a capital gain (say from another property you sold in 14-15) and not any other income. You can carry over the capital loss in your name until such time you earn a capital gain in the future (I don't know how many years you can carry this over). If the title is under both your name and your ex, my understanding is you are only entitled to claim half of the cost.

  • Cheeper on 01/07/2015 - 13:39

    If it is not an investment property then you cant claim.

  • spacecowboy on 03/07/2015 - 17:54

    'When you sell or otherwise dispose of an asset it's called a CGT event. This is the point at which you make a capital gain or capital loss.'

    https://www.ato.gov.au/General/Capital-gains-tax/Selling-an-…

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