This week’s question comes from Tina (paraphrased):
The TWG report recommends that family homes be exempt from its proposed CGT. If I sell a family home which has had rooms rented out over a period of time, would I have to pay CGT on the sale or a portion of the sale?
Amanda Watt from Shortland CA kindly responds below:
Based on the TWG’s final report – you will have two options, you can either declare the income, claim no expenses relating to the property and then
you won’t pay CGT when you sell. The other option is if you want to claim expense relating to the property (for the portion rented out) against
the income earnt then you would also pay CGT on that portion when sold.
Note that this answer is general in nature and not intended as professional advice.
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