To ensure the tax optimization of filing your individual’s tax when you have sold an investment property, please provide your accountant with the following information:
Related to property purchase:
- Purchasing cost – please provide Final Statement of Adjustment (SOA)
- Land transfer tax amount – please provide Land Transfer Deed
- Lawyer’s fees
- Cost of renovation after acquisition fo the property
- Other expenses during the property purchasing process
Related to property sale:
- Sale price
- Commission paid to the real estate agents
- lawyer’s fees
- Cost of renovation and improvements for the sale
- Other expenses incurred from the sale such as mortgage discharge penalty, staging fees, etc
If the property has been your principal residence during your possession of the property, you can refer to one of our services to evaluate the property’s fair market value for a certain time point in the past. You can also contact us to discuss if 45(2) election or 45(3) election can be used to increase your tax efficiency.