How To Avoid Capital Gains Tax On Investment Property In Australia
. You report capital gains and capital losses in your income tax return and pay tax on your capital gains. Holding investments for 12 months If you hold an investment property for longer than a year you are entitled to an automatic 50 discount on any capital gains tax.
As a general rule you can avoid capital gains tax when selling your investment property if that property is your primary place of residence PPOR. In the interest of avoiding capitals gains tax youll need to live in the property for a minimum of six months for it to be considered your PPOR before moving out and using it as an investment property. You can generally claim the main residence exemption from CGT for your home.
Avoiding Capital Gains Tax by living in the property.
Note that you wont be able to do this if you rented the property out and moved in at a later date. If you have owned your property for more than a year and are an Australian resident you are eligible for a 50 discount on your capital gain. Other exemptions that may work in your favour include. All of your capital gains must be reported but youre only allowed.
