All Topics / Help Needed! / cgt for a pensioner
howdy. if a pensioner(no tax bracket) buys a block of land and on sells within 12 months do u have to pay cgt. cheers.
The australian tax system is based on self assesment. We can write what we like on our returns and the ATO will accept them.
If they do an audit on you well then it might help to have done the right thing.
In this case you should declare it as a CGT event and pay tax on it at the marginal rate.
of course. Everyone has to pay tax. How much will depend on how big the profit is. If the pensioner has no income (but i think the penson is taxable income??), then they can make $6000 profit and pay no tax. This may equate $12,000 profit before the 50% CGT discount is taken off.
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
thanks for the advice.
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