50% reduction in capital gain and general idea about CGT

50% reduction in capital gain and general idea about CGT

As per my understanding if you have puchased a property after 1989, and your investment is more than 12 months, you are eligible for 50% reduction in capital gain. Correct me if i m wrong …

does this applicable if I have bought a off the plan property and kept it for more than 12 months and sell it before the settlement ??

I tried very hard to find proper explanation about how to calculate CGT, but not much luck with very well explained, sweet and short document. But from my reading from here and there what i found was described below. Please correct me if I am wrong …

for explanation lets say I made a 85,000.00 Capital Gain on off the plan property I purchased in oct, 2008 and sold jan, 2011 before settlement.

– if you purchased a property after 1989, and hold the investment for more than 12 months only 50% of your total capital gain is taxable (e.g. CG = 85,000.00 / 2 = 42,500.00)

– taxable capital gain will be added in to other taxable income from job, rent or any other (e.g. Income = 60000.00 / year)

– TAX is being calculated based on Normal TAX Rates of that financial year on final taxable income including CG (e.g. Taxable Income = 60,000.00 + 42,500.00 = 102,500.00)

– if you do Capital Loss, it doesnt affect taxable income you earned from other source. (e.g. Income = 60,000.00 / year; capital loss = 20000.00 for that year; Taxable Income will not reduce to 60,000.00 – 20,000.00 = 40000.00 for that financial year. It remain same as 60000.00.)

– you are eligible for all property related expensis deductable from the CG before adding in to your tabable income (e.g. property maintanance, property purchase, property sell etc.)

If I have missed any point please add it here …

Thanks in advance