Beginner’s Guide to Capital Gains Tax for Investment Properties

Man carrying huge bag of money

If you’re an Australian property investor and you want to know how Capital Gains Tax works, you’ve come to the right place. This post introduces the basic concepts behind capital gains tax in Australia; explains what happens if your investment property was also your main residence for a portion of the time; shows how depreciation fits into the equation; and provides a step-by-step guide to calculating CGT. A spreadsheet is provided to help illustrate the concepts and calculations, and if you like managing your own finances and doing your own tax, then you can edit the spreadsheet yourself to work out your CGT.