Expatriate Aussies Lose Capital Gains Tax (CGT) Discount
Expatriate Aussies Lose Capital Gains Tax (CGT) Discount
Source Pizabay.com
Many expat Australians living overseas may have missed the fact that they are no longer entitled to a 50% Capital Gains Tax discount on Australian taxable property. It was announced on Federal Budget Night, 8 May 2012.
What this essentially means is that if the property has been held for more than 12 months, any gains that occur after 8 May 2012 and up to the date of sale of the property, or the permanent re-entry date of the non-resident taxpayer or expatriate will be taxed at 100% instead of the previous 50%. Non-residents and expatriate investors now have two choices. They can either pay CGT on the full amount of any capital gain made on the sale of the Australian property without access to the 50% CGT discount concession or engage a certified practising valuer to obtain a market valuation of the property as at 8 May 2012 and claim partial 50% CGT discount concession.
Certified Practicing Valuers are listed on the Australian Property Institute website https://professionals.api.org.au/ – search in the category ‘Property Valuation’ and by suburb for someone with the CPV qualification.
Even if you are not an expat Australian, it is always a good idea to obtain an accurate independent property valuation. This is a particularly important task to complete when you either move out of a property you have been living in and rent it out to a private tenant (which usually happens when an Australian goes to live and work overseas), refinance the property or need to maximise your taxation concessions.
The other benefit of obtaining a current property valuation is that the property can be insured for the right amount. Some valuers and Quantity Surveyors (listed at the Australian Institute of Quantity Surveyors https://www.aiqs.com.au) are able to prepare an up to date depreciation schedule which may also provide other tax incentives. During this process, your valuer may make other recommendations and as property is usually a large part of your investment portfolio, it may be time to schedule an up to date consultation with your licensed financial planner or personal accountant.
Buying property, Investment property, Overseas Buyers, Real Estate News & Opinion
+61 39816 8555