Just seeing if any one has any idea's that will minimise capital gains tax on granny flat on the sale of our own family home. We have lived here many years and not planning on selling for many more, just trying to be prepared for the future.
We have recently had a granny flat built with the intention for family to live in rent free. However this is now not happening so we are deciding whether to rent it out.
I am aware if we do this, our house will be subject to a portion of cgt when we sell.
I've heard though its only the land value that is affected and time. Any one have any further information on this and what we can do now in relation to valuations to help this? Is the land valuation you get each year ok for this? Just working out which % of land is for investment or would depreciation report be better?
Also if i declare the rent now, but don't claim any deductions will that assist with cgt at the time of sale?
Any tips Any one? Thanks in advance
Minimise CGT on granny flat
Comments
Look at the example of Erin. Then simply pro-rata - more information is available here for that
If the above is still not giving you any clarity then I highly suggest seeing a tax professional.
Invest in crypto, wait a few months, the longer the better. Sell for loss and reduce your CGT.
this is not having any advantage but will still cause more loss as reduction is before tax (so 10000$ loss will make him to loss minimum 5000$!)
Some people don’t have much sense of humour
:man_facepalming:
However, if his crypto shoots up 10 000% he will have even more CGT to pay.
Only if you sell. If you never sell then you don't pay CGT. If you wait long enough then almost all investments will tank. taps head
Can't specifically answer your CGT question but I can 100% endorse the idea of getting a depreciation schedule if you plan to rent out the property (assuming that is what you meant by a depreciation report).
What did you accountant say?