Tax Implications for Property Selling

Property selling is not an easy task. It is advisable if you can find a reliable and trusted real estate agents for they are already aware about the things that that you need to do, like paying of  the property tax. If you use your property for business purposes, lease it out on rent, renovate it for profit, then you come under the income tax, capital gains and goods and services tax bracket.

Other things that you need to know when you are into selling a property are:

Your property

You have no tax implications if you are choosing to sell the house that you own. You are exempted from tax if your land is no more than 2 hectares. In addition, if you owned it as a family home the whole time, then you are exempted from paying tax. And, as long as you do not use it to operate your business or lease it out on rent, you will not be eligible to pay tax.

In case, you don’t meet these conditions, then you may be eligible for a partial exemption which means you will have to pay tax.

Inherit a property space

Since the property is coming from your ancestors, there are no tax implications in this case. However, whenever you choose to sell it at a later stage or choose to get rid of it, you may be liable to pay capital gains tax.

Transfer of property in divorce settlement

If you are transferring your real estate property to your spouse as part of divorce settlement, then the liability of capital gains tax is ‘rolled over.’ Which means when you are transferring the property, the capital gains is not taken into consideration. Later, when your spouse decides to sell the property or dispose it, then he or she is liable to pay the capital tax gains. It is better to ask estate agents when you are into this situation.

Did you know that one of the factors that you can use to increase the value of your house are the wooden floors? Wooden floor adds an elegance  atmosphere to your house.

Make sure to contact building inspections Adelaide for your home.