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selling your house - is it considered income?
10 replies to this topic
Posted 31 March 2008 - 12:00 PM
Ok this is maybe a dumb question.....
But when you sell your house, do you declare it as income? with tax and centrelink?
Posted 31 March 2008 - 12:13 PM
You really need to provide more information but...if it's your primary residence I think any capital gain is tax free.
If you are on a pension you can sell you house and it's not considered income for 12 mths, but they will deem that you are earning interest on the money and that interest is counted as income. Not sure about other payments though.
Posted 31 March 2008 - 12:26 PM
Generally not if it's your primary residence and you've lived there a year or more, from what I remember, but I could be wrong.
Posted 31 March 2008 - 12:37 PM
Great Question. We are currently looking at selling our house due to interest rates (and renting) and wanted to know the same thing. We will have equity though, does that make a difference. Want to put the equity into a long term deposit account to buy another house in the future.
Posted 31 March 2008 - 12:53 PM
What you get from the sale of your residence is not income but it is if it's from the sale of a rental property.
Remember though if you put your money in a bank for any length of time the interest on the money is considered income.
Edited by wild~tulip, 31 March 2008 - 12:54 PM.
Posted 31 March 2008 - 01:16 PM
No, its not income.
If its an investment the "profit" is subject to capital gains but the whole amount is not taxable income.
If its primary residence it is not taxable in any way.
Only the earnings of your investment (interest) will be taxable.
Edited by KT1978, 31 March 2008 - 01:16 PM.
Posted 31 March 2008 - 01:26 PM
If you run a a business from home or claim a portion of your house on your tax returns (ie as an office) you may be liable to pay a percentage of the profit.
Posted 01 April 2008 - 09:57 AM
Thanks everyone for your replies - that is what i thought, but just wanted to double check....
Lindyloo - that is where we are at as well...
Posted 01 April 2008 - 10:03 AM
sucks doesn't it Kacklan.
I look at it that we will be debt free, can pay of his car and upgrade mine and still have a chunk of money to sit on for the future.
Not ideal to rent after owning for so long but I would rather sell than lose my house. My parents lost their house and I never want to go through that.
Posted 01 April 2008 - 10:29 AM
It sure does!
We have out grown our house, and although rent is "dead money" as they say.... here, we can rent a 4 bedroom, 2 bathroom, double garage, 2 living area house for around $150 per week cheaper than what we are paying in repayments/strata fees/rates etc now, and it gives us a chunk of money that otherwise probably would never have saved!
So to me it makes perfect sence! and in the future if these crazy interest rates come down, we will have a deposit already!
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