REAAAAAAAALLY confused...Family assistance.

[princess niamh]

Ok..
we have to put in or income for the past year.

We have sold our house and we got $80,000 profit from the sale.

Where and how does this go in?
Is it straight income? Considering that FAO have been adding our rental loss as income wouldnt it be unfair to now take form this money?

It will be used to pay capital gains eventually.

Please dont just guess only answer if you know..theres been too much guessing already! lol.

[Issey]

you will need to see an accountant to work out your profit / loss / capital gains. I would probably not declare it until tax time as it will be impossible to guess until your accountant works it out. I am guessing this was your investment property.

[princess niamh]

you will need to see an accountant to work out your profit / loss / capital gains. I would probably not declare it until tax time as it will be impossible to guess until your accountant works it out. I am guessing this was your investment property.


Yes exactly it was an investment!

I wil get DH to meet with the accountant.
He wont do his tax till last minute and I dont want to get in trouble for under quoting!!!!

[KatiesMum]

I do not have much experience with FAO ... but am an accountant so ....

If it was an investment property, then the rental income / deductions for interest are taken into account when calculating your taxable income (and therefore FAO payments)

If you owned the property for more than 1 yr, and it was owned in your personal names, you are entitled to a 50% capital gains tax discount, so you will only include 50% of the gain in your taxable income .... but this gain will affect your FAO payments.

If it was for a house you lived in (ie your principle place of residence) then it is not assessable income.

The best advice I can give you, is go to see an accountant and lodge your tax return before lodging your claim .... as if you get it wrong, they will want money back.

[jalibali]

I am in the same boat, we have just exchanged contracts on our investment property from which we expect to profit about $40K

I searched the centrelink site and found that it is your gross captial gains that is calculated into your income. So that to me would be the amount before you pay capital gains and take deductions out.

I am still a little confused by it though! However I claim my benefits at the end of the financial year - I don't think I will get any this yr though due to the Capital gains, I am most annoyed though that I won't get the baby bonus anymore :(

Oh well keep me updated on any info you get:)