Capital Gains Tax (CGT) on Property: Do you have to pay?

Key Takeaways:

• Rate: 10% on the Profit (Gain).
• Principal Home Exemption: If you lived there for 2 of the last 3 years, it is EXEMPT.
• Calculation: Selling Price - (Cost + Improvements).

When you sell a land you bought 10 years ago, you make a huge profit. The government wants 10% of that.

Exemptions

The most important rule is the Principal Place of Residence. If it was your main home, you pay 0% CGT. This protects average families upgrading their homes.

Investors Beware

If you flip land (Investment Property), you MUST pay the 10%.

• Keep receipts of "Improvements" (walls, filling) to deduct from the profit and lower your tax.

Verdict: Consult a tax advisor before selling investment land.