Will you be liable for Capital Gains Tax on sale of the family home?
If you are running a small business from home, YES, you will potentially have a capital gains obligation for that portion of your home you use for income producing activities (ie using it as a base for your small business).
Did you also know – “If you run your business at your home, or your business is based from home, you can claim the business portion of some expenses, including mortgage interest and electricity.
“If you sell your home, you may have to pay capital gains tax (CGT) on the business portion and declare it in your tax return.” This is whether you claim occupancy expenses or not!
Call Stellar Accounts today if you have any queries.
Stellar Accounts – servicing Brisbane North individuals and small businesses with tax, accounting and bookkeeping assistance.