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Date Posted: Sunday, November 12, 08:47:09pm
Author: Jessica
Subject: Capital gains tax on property

I bought land a few years ago that I intended for investment. The house will be completed soon and I am planning on selling it in a few years time. I guess I have to pay capital gains tax on it. But then I read this amazing article in money magazine that said i only need to pay tax on the capital gains since it was first rented, not when I bought the land! Is that really true?

The article also said I can nominate it as my principle place of residence, in which case i pay no capital gains tax! All I have to do is live there when it is built. Do you agree?

But if I do that, what about the tax deductions I have been claiming for the loan interest so far? Would I have to give that back?

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