Selling your rental property

22nd January 2019 |

When selling your rental property, your main focus will likely be to maximise your selling price with worrying about the tax implications later.

CrossCorp before you put your property on the market to discuss:

The likely Capital Gains Tax implications: 

  • Will there be a Capital Gain?
  • Is there any eligible additions to the cost base?
  • Have you been claiming capital works deductions which now need to adjust the cost base?
  • Will there be a capital loss?
  • Can the disposal of other assets change the tax position?


The likely cash flow implications:

  • Are excess funds actually yours?
  • What to do if there is a shortfall on the properties loan? Can this remain deductible after the property is sold?
  • What happens if I break a fixed term loan?
  • If I spend money on the property for sale, how much will I get back?
  • When will the tax on the gain be payable and what else will the gain affect?


The key areas:

  • The apportionment between rental expenses and capitalisation when the property is ‘no longer available for rent’ and ‘being on the market’
  • How can repairs be deductible if I am no longer earning rental income?
  • Ownership periods – was the property assessable for the whole ownership period? Is there any CGT exempt periods (main residence exemptions)
  • Have any owners been non-residents in the ownership period?


ATO Audit:

  • The ATO spends considerable resources to monitor and audit rental property and disposal transactions.  Any errors require tax, penalties and interest to be paid, which can be severe.

Contact CrossCorp to discuss your property and any opportunities!