Are you thinking of selling your investment property? Don’t forget to factor in the cost of Capital Gains Tax (CGT). CGT is generally payable when you sell a property that is not your main home of residence and you make a financial gain. So, if you wish to dispose of a property that you have purchased (and have tenanted), inherited, received as a gift or won as a prize that is not your main residence you will be liable for CGT. You are taxed on your net capital gain at your marginal tax rate.
Your net capital gain is: Your total capital gains for the year minus your total capital losses (including any unapplied net capital losses from previous years), minus any CGT discount and CGT small business concessions to which you are entitled.
There are ways to reduce your liability by offsetting your capital losses from other properties and assets that can be discussed with your Accountant.