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The Experts

Listener query: Do I have to pay capital gains tax?

The Experts
Thursday, March 15, 2018

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Capital gains tax is a popular topic on radio program Talking Lifestyle's On the Money. In a recent . In a recent episode, one listener, Kris called in from Noosa with a question about her son's property.

My son purchased a house in noosa as his primary residence, but due to circumstances he had to sell it within three months…"

"He ended up making a profit on the property, but will he have to pay capital gains tax?” she asked money experts Peter Switzer and Paul Rickard of the Switzer Report.

With Noosa being one of Rickard’s favourite holiday topics, he was happy to take the reins.

“If that property remained his primary residence the whole time… then it will be free from capital gains tax,” Paul said.

"There's no minimum holding period, and it's one of the reasons we often tell people to actually invest back into your home, because that is the only capital gains tax free asset.”

According to Rickard, there is a difference between investment properties and shares when it comes to capital gains tax on investments. And there is a big distinction between owning something for 12 months and owning something for more.

If you own something for less than 12 months you pay tax on the whole gain, and if you own something for more, you pay tax on half of the gain known as the CGT discount.

At the end of the day, as long as it's your primary residence, you will not need to pay capital gains tax. That being said, you may rack up a hefty bill on removalists.

To listen to the full explanation, click the video above.

About the show: 2UE radio show ‘On The Money’ – Talking Lifestyle (954)

Live 16:00-17:00, Monday to Thursday. Broadcast in Sydney, Brisbane and Melbourne


Published: Thursday, March 15, 2018

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