How to Use a Premium Directory Posted On : Dec-22-2011 | seen (115) times | Article Word Count : 471 |
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In our global economy it is becoming more common for people to move once Rafa Silva Portugal Jersey , twice or more during their lifetime. Many of these people have purchased a home for them or their family and are concerned about the taxation implications if they move and then later on decide they want to sell.
There are quite a few scenarios to consider when trying to answer this question and we will endeavour to look at each of them and the taxation implications.
1. Do you need to pay capital gains tax when you sell your family home and it has been rented out ?
Scenario One Troy and Mary purchased a home in 2005. They move in straight away and lived in it for 2 years. They then kept the property, moved overseas, rented a house overseas and rented their house in Australia. They now want to sell their house in Australia. Will they pay tax on the sale ? Troy and Mary will be able to elect for their house to continue to be their main residence for a period of up to six years and therefore if they sold their house from the time they moved overseas up to six years later. This concession is sometimes referred to as the ‘absence’ provision and does not just apply to moving overseas. It applies whenever you dequate. Make sure your accountant also knows so they don’t make mistakes when preparing your tax returns.
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