As a rental property owner, understanding Capital Gains Tax (CGT) events is crucial for accurate tax reporting and minimising potential penalties. A CGT event occurs when a significant change happens to your rental property, affecting its value.
Why Timely Property Valuations Matter
- Ensures accurate tax reporting
- Reduces risk of disputes or audits
- Saves costs by avoiding complex and costly retrospective valuations (see our previous blog on Retrospective Market Valuations)
Common CGT Events for Rental Properties
1. Selling the property
2. Transferring ownership to a related party
3. Changing the property's use (e.g., rental to primary residence)
4. Demolition or destruction
5. Compulsory acquisition by the government
6. Gifting or inheriting the property
7. Partitioning or dividing the property among co-owners
8. Terminating a lease (99 years or more)
9. Granting an option to purchase
10. Death of the owner
It is advisable to seek guidance from both a tax professional and a valuer in order to determine the most suitable approach for your specific situation. Our experts at DELPHi are here to help. Contact us at any of our offices:
Melbourne:
Phone: (03) 9706 7940
Queensland:
Phone: (07) 3852 6012
Perth:
Phone: (08) 6270 2439
Email: perth@delphiproperty.com.au
Visit our website at www.delphiproperty.com.au for more information and to schedule a consultation.
Comentários