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Fantastic, thanks for all the info guys. I really appreciate it.
I won’t be selling the property for a while though. Just curious about the CGT. I just didn’t want to work so hard for them to tax so much.
Is there anyone on the board that has a property in St James or near it.
I’m confident that I chose a really good suburb. They are planning on redeveloping Burswood which is like only 2km away. I think they’re spending like $700 million on building new appartments. Its Mirvac Fini that are doing the development.
This is the link if anyone is interest.
Ok,
I just read one of Steve McKnights post about captial gains tax.
Below is what he has to say about this topic.
I imagine that you own the property in joint names or at least in one name as an individual (as opposed to a company).
This being the case you will qualify for a 50% exemption.
Ideally the would have the following effect:
Capital Gain: $100,000
Split 50:50 means you have a taxable capital gain of $50,000.
Then you both qualify for a 50% capital gains discount meaning that you will be paying tax on only $25,000 (each) of it.
I’m not sure how much other income you have, but, assuming you have none, tax on $25,000 is $3,880.
So, on a gain of $100,000 you might be able to knock it down to $3,880 * 2 (people) = $7,760.
I think I kinda understand it now. Before I thought they would charge you 50% of the captial growth of you property. If I’m wrong, can you let me know
Thanks.
