How to Reduce Capital Gains Tax for Your Rented Home?

There are many taxes that you need to pay to the government for the public welfare. One such important Capital gains tax is often consider as a voluntary tax. With the help of professional it is possible for you to reduce totally avoid or reduce payment of capital gains tax in the time when you renting your house.

• To qualify for a full Capital Gail exemption, the property must have been your main residence from when you acquired it. If you move out of the property and rent it, then you still get this exemption from CGT for up to six years after you move out.

• Another capital gains tax advice is  that If you originally bought the house with the intent to rent it out after 20 August 1996, but start living that home again after some time, you will become partially exempt from CGT on a proportionate basis as you spend some years in that house. 

Want to know more how to save your capital tax then you hire small business accountant in Sydney. 

You can also contact Gotsis Accounting for the professional tax advice.

Two Most Important Capital Gains Tax Advice

In Australia ,there is a very clear-cut tax regime.  There are certain rules that you need  to follow, in order to enjoy your right as an Australian citizen. In this write-up, I have given some important information about the capital gains tax.

The most important Capital Gains advice  is that you pay this tax of for the financial year when you make the capital gain. This counts as your  annual income tax return. Any net capital gain you make for an income year must be included in your total income. 

However, if you make a capital loss, you cannot claim it against income, but you can easily reduce a capital gain in the same income year. If your capital losses exceed your capital gains or you make a capital loss of an income where you don’t earn anything you can generally carry the loss forward and your small business accountant in Sydney deducts it against capital gains you make in the coming years.

To get more capital tax advice contact Gotsis Accounting.