CGT on commercial property sales
Selling a commercial property is likely to result in either a capital gain or capital loss. When the sale results in a gain, it will be subject to capital gains tax (CGT).
A capital gain or capital loss, is the difference between what it costs to originally purchase the property plus any improvements made, and what you receive when you sell it. CGT is the tax you may then have to pay on the profits made from the sale of an asset. The amount you must pay is dependent on the property’s ownership structure, where the type of entity the property is owned under could drastically change the tax rate you have to pay.