Hi all
Can anybody clarify for me how the CGT is calculated? I know it’s taxed at your marginal rate or half that if you’ve held it for 12 months.
What I am unsure of is if you earn $30K, is it taxed at 30% for all of it, or does it push you up into the next tax bracket?
Example.
I earn $45K (30% bracket). I have a capital gain of $30K (after halving). Does the taxman say – 30% of $30K, or does he say, add that to your taxable income, and you now earnt $75K, with the resultant tax?
Cheers
MelMel
The gain is just added onto your taxable income. In your example, your income would go to $75,000 and you would pay tax on this amount.
There is a booklet available for download from the ATO webiste or a paper copy can be sent if you call them up.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Bugger!!
[!][xx(] Thanks Terry, that is what I thought, but with all the general – you pay tax at your marginal rate ie. if you earn 30K you pay tax at 30% doesn’t leave room for the ‘bracket creep’.Cheers
MelHi Mel
Just a reminder that there is NO Capital Gains Tax in NZ.
Yippeeeeeeeeeeeeee
Regards
Muppet
As I was clicking on this link seeing you as the last poster I was thinking to myself
‘Don’t Gloat Muppet!!!'[
!]Too late. I’d love to invest in NZ, but unless you want to find the deals for me I’m better off trying to get my affairs (in all senses[
]) sorted here in Aust.Cheers
Mel
[
!][xx(] Thanks Terry, that is what I thought, but with all the general – you pay tax at your marginal rate ie. if you earn 30K you pay tax at 30% doesn’t leave room for the ‘bracket creep’.
]) sorted here in Aust.The topic ‘Capital Gains Tax’ is closed to new replies.
