Tax Question for Home Owners

[ben351]

2 Years ago i brought a house with someone then sold it after about 9 months and ended up losing money on it ... i heard a rumour that you can claim that money back at tax time ?

True or False ?

[BokboKGuN]

Can't claim back but can deduct from your Capital Gains Tax...someone should know more than me

[Turbo2.6L]

Only works in your favour if you have another investment that increases in value i believe? You take the loss amount away from the profit amount & only pay tax on that...

[ben351]

ahhhh so if i sold two houses and lost on one but gain on the other id take the loss off the gain ... if that makes sense ... ok :) thanks dude

[BokboKGuN]

Yes...but u bought the house with your partner at the time..so when the time it is sold...the losses from the sale of the houses could be distributed to the both of u.. say ur loss is 10,000, it could be distributed to both of u at 50% each so u might be able to claim only 5,000. I'm not particularly sure about this rule though.

[BokboKGuN]

Only works in your favour if you have another investment that increases in value i believe? You take the loss amount away from the profit amount & only pay tax on that...

yeapp..any capital gains.. sale of houses, shares, business etc..

u can only offset it though...gov wont give u cash back lol

[bulkos]

yep as everyone has said, coz the cgt event was within 12 months of purchase the whole gain is counted, or in your case loss.... but you split it with ur partner .. so bokbo's correct in saying that you would have a 5k loss.

The loss can only be used to offset a gain down the track, not against your income that year. So that 5k cgt loss stays with you until you need it.

If that place was your principle residence then there is no cgt event.

[[Jacek]]

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well there is a CGT event but the gain/loss is exempt due to the primary residence exemption

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