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Insights for Individuals

How much cash will be left over when your investment property is sold? 

Whether you’re selling a property to pay down debt or reinvest elsewhere, quantifying any tax liability as a result of a property sale is a significant factor to determine what cash you have to play with.

Seeking assistance from your accountant before you sell your property not only helps you understand any tax liabilities but helps ensure the transaction is tax effective.

Speaking to your accountant ‘after the fact’ and asking how much tax you have to pay as a result of the sale is never a sound strategy.

Unfortunately, there is no ‘one size fits all’ way to calculate the tax impacts on the sale of a property, however the table below outlines some, not all, of the considerations and questions accountants work through when dealing with the tax treatment of a property sale: 

As highlighted above, these are just some of the factors to consider, so be sure to include your accountant before you sell your property.

The tax cost can be significant, which makes it important to understand your position to help you make an informed decision in determining what cash is left over.

For more information

To find out more about your investment property and to ask the right questions before planning to sell your property speak to your local RSM adviser today.