Most Home Owners are aware that you don't have to pay Capital Gains Tax (CGT) if you sell your main home.
However, you may have to pay CGT on a portion of the sale proceeds, if you run your business from your main home.
The sneaky little trap is that you may have to pay CGT even if you don't claim any of the business's expenses (e.g. portion of electricity, Rates, etc.)!
The Tax Department's 'test' depends on whether or not your were eligible to claim business expenses, not whether you actually claimed those expenses.
If the business you operate from home is structured as a Trust or a Company, you may not have to pay any CGT.
As is always the case when dealing with these tricky little Tax issues, if you think this issue may affect you, it's best to discuss it with your Tax Professional.
Tags:Tax |