Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

How Can I Offset CGT by Previous Loss When I Sell an Investment Property that Has Been Tenanated?

Notify me of new replies via email
Vera | 18 Feb 2018, 04:16 PM Agree 0
I am not sure how to apply the CGT calculation for offsetting the gain after a sale of a property if I have already registered a Capital Loss with ATO?

I. Property purchased in 2010 - 200,000
II. Stam duty - 5,000
III. Expenses (legal) - 1,500
IV. Sale achieved: 400,000
V. Real E.A.'s Fees: 11, 000
VI. Reno before Sale: 7, 000
VII. Salary for the year of sale: 100,000
VIII. Capital Loss in 2007: 20,000 (for offset)

I tried to use a calculator for CGT but I am not sure how to use these numbers so I have a rough idea and to predict any numbers. I am also not sure if I can hold the use of offset for later when I want to sell another investment property.
Appreciate if you can help me with this, or if you can not please direct me to an example that can help me predict the outcome. I am also not sure how much I can save by using expensive Real estate or a generic for the sale.

Not sure of you need to know but the property is in 2541 postcode, NSW currently tenanted.
  • Property88 | 19 Feb 2018, 10:11 AM Agree 0
    Hi Vera,

    In your case your profit would be $200k minus expenses = $175,500

    If you're an Australian resident you're entitled to the 50% discount = $87,750 added to your income.

    Subtract the $20k loss = $67,750 added to your income.

    According to the ATO Tax calculator ( based on the 16/17 fin year. your tax would be $24,600 on your $100k income, or $49,600 on $167,500 income. So your tax bill on your gain will be around $25k. Which is not too bad on a $200k profit!

    Hope this helps.
  • Vera | 22 Feb 2018, 01:05 PM Agree 0
    It helps heaps, thank you.
Post a reply