Selling a Property: Tax-smart Tips for your Investment

The Australian Tax Office has published some tips regarding buying property. This is part of a three-part series summarising those tips, blog posts are also made on advice on buying property and owning property.

If you sell an investment property or the main residence that you have rented out, remember:

You may have to pay capital gains tax.

Capital gains tax is the difference between your cost base (costs of ownership) and your capital proceeds (what you receive when you sell the property or the market value when you transfer the property). You might have to pay this even if you transfer the property into someone else's name.

If you have claimed a capital works deduction in any income year your cost base should not include these amounts.

If you own the property for more than 12 months, you will be entitled to a 50% discount on the tax on the capital gain.