Hi all,
Just wondering if anyone knows of an online calculator (or other method) that estimates CTG. We have had our PPOR on the market for a while without much joy. We're beginning to think it might be easier/quicker to sell our IP in Canberra and rent out our PPOR instead.
The IP is probably worth around $380k? and rents for $395pw – It's been a great little set and forget job and while selling it isn't our preferred option it might get us the end result we're after. Obviously there'd be CGT involved but I own it in partnership with my wife who isn't working at the mo, so her CTG will be reduced.
Any advice would be fantastic!
Regards,
RustyErr, that would be CGT as in Capital Gains Tax… not CTG – sorry dyslexic!
RustyRough maths.
possible selling price – purchase price = Taxable Capital Gain
If property has been owned for more than 12 months only half the gain is taxed.
Apportion the balance remaining in accordance with ownership ration of property and add this figure to taxable income.
Compare tax payable on taxable income without sale of property with tax payable with property profits.
The difference is what your CGT liability will be.
A more accurate answer will include allowances for purchase and selling costs and depreciation claims made.
Don't have CGT calculator on hand but google reveals all.
Thanks Derek,
I did try one I found through Google but it punched out some random figures. Your post gave me a good ball park figure.
TaI recall seeing an online calc for CGT on the ATO site
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
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