Hi there ive got a question ive recently just bought my first property investment, a block of land on the north coast in perth, just got a question regarding capital gains tax for when/if i go to sell it, Is the capital gains tax pretty much 15% of the profit? So if i sell it for $100k more than i bought it the capital gains would be around 15 grand?? Also is the amount of capital gains effected if i sell it within a certain time? Like if i keep it for less than 12 months? any help would b appreciated, thanks [thumbsup2]
When you sell you need to calculate the total profit – less all costs incurred inc interest etc.
This figure is halved if you hold the land for more than 12 months.
You then add the profit to your taxable income and recalculate the total income tax paid.
There is no set figure. It all depends on your tax bracket. The profit may even push you up into a new bracket in which case some will be at one tax rate and the rest at the higher one.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
You had better go to the ATO site, and download the CGT booklet. http://www.ato.gov.au
The max CGT could be 48.5%, the min zero (or even a loss). It all depends on how long you have held the property and how much you other income is.
Terryw
Discover Home Loans
Parramatta
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Hopefully you held the property for more than 12 months between the entering of Buying Contract date and the entering of sale contract date.
If individual tax payer 50% discount applies on assets capital gain if held for more then 12 months.If you own property in joint names the gain is split 50% to you 50% to other joint owner . Then this is added to your taxable income. So with a 50% discount and a 50% joint ownership this works out to 25% capital gain added to taxable income.
Holding costs like interest / borrowing costs/ council rates would be added to your cost base unless you have already claimed a tax deduction against income earned by property.Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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