Limited tax liability
Question from John updated on 26th September 2018:
I am looking to sell an older, low value (troubled) property which I have had since 1994. How do I deal with the tax side of things? Do I declare the sale price, etc? Maybe one of you accountants might like the job?
Our expert Mark Withers responded:
Assuming the property was acquired as an investment and you are not involved in developing, building or land dealing the gain on sale is a capital gain. Even if it were taxable the deduction for the cost of the property would be allowable. If you have previously depreciated it this may be subject to recovery but that should be the only tax liability you face.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.