Legal and Tax Implications of Selling Property in Brisbane

Like they say, there are only two things in life that are guaranteed: death and taxes.

When you’re selling a property in Brisbane, you should be aware of the legal and tax implications that come with it. Thankfully, there are several exceptions for taxes which you may be able to benefit from, minimising your payable tax.

Let’s get the lowdown from the property consultant specialists at Patrick Leo, outlining the most common legal and tax implications when you’re selling a property in Brisbane.

Legal requirements of selling property in Brisbane

All home vendors, as well as real estate agents, have legal requirements they need to abide by when selling a property in Brisbane. This includes duty of disclosure, in which sellers and agents disclose information about the property that could influence buyers in their decision to purchase it. Structural issues such as white ant damage must be disclosed to buyers – otherwise the purchaser could have recourse to lodge a claim for financial damages after settlement.

Each state has its own specific legal requirements for selling property. You can learn more by contacting the team at Patrick Leo, who’ll put you in touch with one of their trusted experts on the topic.

Tax implications of selling property in Brisbane

Tax implications are another consideration when selling property in Brisbane. The most common tax implications for the sale of property include:

• Capital gains tax
  Selling an investment property that has been rented out for the entire duration of your ownership? The capital gains tax will be calculated as the proceeds from the property sale, minus the cost of the property. There are also other factors that need to be included in the calculation of the capital gains tax, such as legal fees for purchase and sale, commission fees and transfer duty.

• Stamp duty
  Stamp duty, or transfer duty, is a tax applicable to every land sale in Australia. In Queensland, a $500,000 property used as your home will result in a payable stamp duty of around $8750. An investment property of the same prices will result in a payable stamp duty of around $16000. Stamp duty exemptions are available for some eligible first home buyers.

• Main residence exemption ​​​​​​​
  If you’re selling your main residence in Brisbane, or a home that has been your main residence for periods of time, you’re entitled to a main residence exemption, or a partial exemption. Patrick Leo can help you navigate these possibilities when selling your home in Brisbane.

Need help navigating the world of selling property in Brisbane? Patrick Leo is here to help. We’re Australia’s leading team of property consultants, helping you form reinvestment plans after selling a property. Our team of expert researchers and buyers sit down with you to assess your position and goals before starting the search for an excellent investment property. Continue your journey to abundant wealth by consulting the specialists at Patrick Leo today.