Capital gains tax (CGT) for property investors in Australia: what you need to know
Being a real estate investor, you are likely to make bigger profits on your investments. But, do you know that you are also liable to pay government tax on earned profit? CGT or Capital Gains Tax is what you should pay for profit earned through property investment. This tax has been regulated by the ATO since 1985, and non-compliance could lead to penalties and seizures. That’s where you should seek Capital Gains Tax Services in Epping from expert accountants. Every profit you have earned through the sale of property must be included in your yearly income tax assessment. However, you are accountable for CGT on property that is not your residence.
Understanding CGT with an Easy Example by Experts
Capital gains, among other taxes, are complex to understand for many property investors. This happens due to variation in tax laws and regulations by the ATO. Hence, consulting Capital Gains Tax Accountants in Epping makes sense to get valuable advice. They help you to keep up with changing tax laws relating to property. Also, they can document expenses you incur at the time of acquiring residential or commercial assets. Check a simple example below to understand CGT computation.
You bought a property for 600000 and incurred an additional cost of 28500 AUD when acquired. If you sell it later for 800000, then your capital gain is 171500 AUD. Capital gain is computed by subtracting the total cost, i.e., 628500, from the sale price, i.e., 800000. Thus, by a simple example, you can understand the capital gain earned and have to pay tax on it.
Expert Tips to Reduce Your CGT Liability
As an investor, there are a number of ways you can follow to minimize tax liability. However, it is essential to get Epping Capital Gains Tax Advice from your accountant. This can help you avoid paying tax that you can exempt. So, here are strategies you should know well:
- Get Primary Residence Exemption
You may get a full CGT exemption if the property you are selling is your main residence. Maintain accurate records to claim your benefit and ensure that you meet the criteria. Primary residences are exempt by ATO from capital gains tax.
- Avail 50% CGT Discount
You can leverage this discount if you hold the property for at least a 12-month period before selling it. This discount is massive and can evade a large portion of your total capital gains tax amount, which is your savings.
- Claim Eligible Property Costs
Epping Capital Gains Tax Accountants advise you to include eligible expenses in the cost of the property purchase. You can cover the cost of stamp duty, registration fee, and structural improvements. This can help in reducing your overall CGT liability.
Get Valuable Advice on Capital Gains Tax Savings
Platforms like Kirpa Tax can help you minimize tax liability from real-estate investments. We are rendering the best Epping Capital Gains Tax Advice. Our expert accountants keep an accurate record of expenses incurred by you on properties to seek deductions and claims. Thus, with us, you can have reliable tax savings.
FAQ’s
What services do CGT accountants offer?
Capital Gains Tax Accountants in Epping help with CGT planning, tax preparation, and reporting. Consult Kirpa Tax for the most trusted services to meet CGT compliance and obligations.
Do I need to consult CGT accountants?
If you invest in shares and properties for appreciation, you should consult CGT accountants. They could help in reducing tax liability by navigating various deductions.
How can a CGT accountant help me with tax?
Kirpa Tax gives you Epping Capital Gains Tax Advice for exemptions, deductions, and claims. Also, we calculate the total cost base and ensure precise reporting to ATO.
Are there benefits of consulting CGT accountants?
Yes! You can get personalized tax advice, expert tax preparation, and maximize savings through deductions. We serve you to minimize your CGT liability.
How do I get the best CGT services?
Kirpa Tax offers the best Capital Gains Tax Services Epping to its clients. We are vetted tax accountants having more than a decade of expertise in this field.
Can you advise me on avoiding high CGT liability?
We give you valuable tips on avoiding high tax liability on capital gains. Our goal is to minimize your tax and maximize your savings by determining strategies.
How can I find a reliable tax service for CGT?
Search online, and you will find the name of Kirpa Tax at the top of Epping Capital Gains Tax Accountants. Call us or visit in person to discuss your tax-related needs.