Do you need to pay tax when you sell a house in Australia?

nancywake2000 on 30/10/2021 - 19:02

Do you need to pay tax when you sell a house in Australia?
I am NOT live in the house in the last 5 years.

Financial

Comments

    • poboy on 30/10/2021 - 19:58
      +33

      Correct answer. Always answer with equivalent effort and detail to the poster.

  • djkelly69 on 30/10/2021 - 19:15

    Did you make a capital gain (profit)?

  • SBOB on 30/10/2021 - 19:25
    +6

    PPOR - no
    Investment property - the ATO thanks you for your contribution.

  • AndyC1 on 30/10/2021 - 19:26

    In simple terms:
    Yes for the 5 years of capital growth you rented the place out, but how you do this I have no idea.

    In more complex terms:
    Get an accountant and pay for some real tax advise (aka how to minimize legally your tax)

    • SBOB on 30/10/2021 - 19:35

      but how you do this I have no idea.

      they would(should) have got a valuation prior to making it a rental

      • AndyC1 on 30/10/2021 - 20:00
        +1

        Do you realy think so base don the info supplied and the questions?

  • AirbusA389 on 30/10/2021 - 19:33
    -2

    tax advice can be very technical. some accountants / tax agent deliberately talk in their own lingo. please get someone who can explain things in a manner that you can understand…

    • deme on 30/10/2021 - 23:12

      It really isn't, just google pay tax on selling house in Australia

  • SF3 on 30/10/2021 - 20:23
    -1

    I am NOT live in the house in the last 5 years.

    Yes

    CGT.

    • Richardc on 30/10/2021 - 20:31
      +13

      Not always
      6 year rule might apply
      https://www.ato.gov.au/individuals/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-(home)/treating-former-home-as-main-residence/

      • Mugsy on 31/10/2021 - 08:25
        +1

        Good advice this. I didn't know about this until I started doing some googling and checked with my accountant. My recent property sale incurs no CGT as no other property is my PPOR (thanks to the fact that I live in my wife's property).

        • stargazir on 31/10/2021 - 09:52
          +2

          You might want to check this. When I looked into it previously spouses couldn’t have 2 PPOR. It was a few years ago though so could have changed.

          • Mugsy on 31/10/2021 - 23:53
            +1

            @stargazir: Yep, did check with my accountant on this. We've only recently gotten married. Accountant asked a tonne of questions and concluded that I wouldn't incur CGT.

        • freefall101 on 31/10/2021 - 10:09

          You can't have two PPOR as spouses, it's one property per year per couple. So up until the date you started filing as spouses you could have two properties, but after that it's one.

      • freefall101 on 31/10/2021 - 10:06

        Key thing there though is

        you cannot treat any other property as your main residence

        It's great though if you rent out your house and move into a rental or move into a smaller house and rent out the primary home.

        Anyway, congrats OP on leaving your taxes to the last minute with something like 5 years capital gains on a house to deal with, some solid financial planning there…

  • cashless on 30/10/2021 - 20:43

    No CGT if it remained your PPOR.
    If it wasn’t, then you need to check ATO rules.
    Don’t you just hate it when a lazy poster barely gives you any information to work on?

  • th123 on 30/10/2021 - 20:59
    +2

    how else are we gonna give wagga a stadium?

    • elgrande on 30/10/2021 - 21:36
      +2

      You don't call Wagga Wagga Wagga…

      • Oz-Bogan on 30/10/2021 - 22:48

        No sir…calling Wagga Wagga Wagga is wrong.

  • JimmyF on 30/10/2021 - 22:26
    -2

    I am NOT live in the house in the last 5 years.

    So its not your PPOR, so yes you will need to pay CGT on the last 5 years growth.

    • dasher86 on 31/10/2021 - 08:27

      Depends if they have another PPOR

      • JimmyF on 31/10/2021 - 08:39
        -1

        ATO is pretty clear you have to 'live' in it to be PPOR. But sure if they didn't claim they lived elsewhere and didn't claim and rent/deductions on their tax during this 5 year period, they could still claim it was still their PPOR.

  • Hardlyworkin on 30/10/2021 - 22:47
    +3

    Hello. Yes it is 50%, I will PM you the account number to pay the ATO.

    • dust on 31/10/2021 - 07:42
      +1

      Do you accept payment via iTunes gift cards?

  • brad1-8tsi on 31/10/2021 - 06:59
    +1

    Talk to an accountant but if you give lousy detail like you have here then they will give a lousy answer.

  • OzHunterNSW on 31/10/2021 - 09:48

    Is it an asset, that you made profit from?

  • Bjingo on 01/11/2021 - 17:17

    Situations where someone sells a house that was previously a main residence is annoying, there is a few ways to approach it but it requires consideration regarding what's best because you can only have 1 main residence at a time. There is a few ways I have seen this situation approached.

    1. with the 6-year rule you can treat a property that was previously your main residence as such for up to 6 years, however if you do this you current residence cannot be classed as your main residence for that time.

    2. You can have the property valued for when it first had tenants and treat that as the cost base, which would probably reduce capital gains considerably. (also attracts 50% reduction)

    3. just say it is an investment property cop the tax after the 50% reduction.

    But yeah, for such a big tax issue, you really should have gone to an accountant and not done it last minute.

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