Turning your home into a rental could trigger costly tax surprises
Many homeowners rent out their family home without realising it can trigger major capital gains and land tax implications, which differ if you move overseas or stay in Australia. Here’s what to check before you hand over the keys.
Moving out of the family home takes on an array of tax implications if it is then rented out. (Image source: Shutterstock.com)
When your family home becomes a rental property, there can be important capital gains tax (CGT)
and land tax implications to consider.These will vary depending on whether you move into another home within Australia and remain a tax resident, or whether you relocate overseas and become a non-resident for tax purposes.
CGT implications
The family home is generally exempt from capital gains tax while it is your main residence.
That all changes …
