All Topics / Help Needed! / capital gains tax

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  • Profile photo of gettingstartedgettingstarted
    Member
    @gettingstarted
    Join Date: 2007
    Post Count: 8
    May 22, 2007 - 8:32 am

    I am thinking about building a house to put on the market during construction.
    My question is how is the cgtax worked out?
    Any help would be great!
    Cheers Chris

    Profile photo of PizangPizang
    Member
    @pizang
    Join Date: 2006
    Post Count: 53
    May 23, 2007 - 4:32 am

    Hi Chris,

    I'm not an accountant but my understanding of CGT is if you hold the property for less than 12 months you have to pay capital gains tax on the entire amount of any capital gain that you make. If you hold it for more than 12 months you are only required to pay CGT on half of the capital gain.

    The rate that you pay in each instance will depend on how much the capital gain is. http://www.ato.gov.au has some pretty useful info on CGT.

    Hope this helps.

    Dan

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