You can’t slide under the radar and avoid reporting capital gain tax (CGT). This is the message the Australian Tax Office (ATO) is sending to property owners after noticing a number of mistakes in people’s tax submissions.
Your main residence is exempt from CGT but if you have used it to earn rental income, whether long- or short-term rentals, or you’ve run a business from home, you may have to pay CGT.
To calculate CGT, you first work out the capital gain or loss of each asset you’ve sold, then reduce your total capital gains with any losses before applying any discounts or exemptions.
If you jointly own the property, calculate your gain or loss based on the percentage of the property you own.Keeping clear records will help you calculate your taxes accurately.
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