How Do I Minimise Capital Gains Tax?
April 16, 2008 by Josie Kay · Leave a Comment
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Q. In August 2004 I bought an investment house with the plan to live in it when I retire. (I’m 55 yrs old in August 2008).
I own my existing home and the investment house has been rented since the day I bought it. My plans have since changed and I wish to sell the investment house to fund other activities in my retirement.
I was planning to sell my present home around Christmas 2008, then live in the investment house until I sell it around July/August 2009.
Is there some strategy I could put in place to minimise Capital Gains Tax when I sell the investment house?
Josie’s answer: As you would be aware, your family home which is called your main residence in the ATO’s Capital Gains Tax Guide, is exempt from capital gains tax (CGT)
However, it is only possible to nominate one dwelling as your main residence. In your case, the dwelling that you describe as ‘your present home’ will be exempt from CGT when you sell. Unfortunately, a portion of your investment property will be subject to CGT. Read more
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