Many of us think that we don’t have to worry about paying capital gains tax on the family home and, generally, that’s true but if you have used your home to produce income that may go out the window.
So if you have rented out your home or even part of it through the sharing economy, for example Airbnb or Stayz, or if you are running a business from home, then capital gains tax may apply.
The ATO says it’s a good idea to get your home valued when you first start using it for rental or business as you’ll need to know this value later when you sell it.
You also need to keep records of the income-producing period and the portion of the property used to produce income to calculate your capital gain.
Effie Zahos has been providing expert advice on personal finance and consumer issues for over two decades, and her insights are sought after by many Australians.
The author of several best-selling books on personal finance, including “A Real Girl’s Guide to Money: From Converse to Louboutins,” “Getting Rich, Staying Rich: A Practical Guide to Investing in Shares,” and “The Great $20 Adventure,” her expertise and experience in the area of finance are unparalleled, and she is a passionate advocate for financial literacy in Australia.
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These Tax Tips with Effie Zahos are for general information only, not tax advice.
Before making any decisions you should speak to a registered tax adviser.