An additional 10% capital gains tax (CGT) discount may be available when you sell an Australian residential rental property that you used to provide affordable housing.
This will increase the potential maximum capital gains discount percentage on your sale from 50% to 60%.
For the affordable housing CGT discount purposes, affordable housing is any dwelling (house, unit or apartment) where the following conditions are satisfied:
When you sell a rental property used to provide affordable housing, you may make a capital gain on the profit. This may qualify you for an additional (up to 10%) affordable housing capital gain discount if you meet the following eligibility criteria:
The capital gain must have been either
You must have also provided:
The additional discount will be pro-rated for periods where you don’t use the property for affordable housing purposes or were a foreign or temporary resident for part of the time you owned the property.
You can invest in affordable housing through a trust.
As an individual investor, only you can claim the additional affordable housing CGT discount. The trust cannot claim this discount.
For you to qualify for the affordable housing CGT discount:
The capital gain can be distributed or attributed to you:
Consulting with a tax professional could assist you in determining your eligibility for CGT discounts – why not speak with us today?