All Topics / Help Needed! / Selling Costs
Hi everyone.
I've never sold a property before and I know very little about the actual costs/taxes when selling an IP.
I'm runing the numbers on selling my IP, which I purchased last Cecember for 352k.
Its cost me about 5k since Ive had it. Rental is currently $320pw, no strata fees.
What Id like to achieve is a sale price that allows me to make a very modest return, maybe 3-5%, obviously the more the better.
5% is about 17k.
Agent fees around 10k (guessing).
Recoup the 5k in costs.
So selling for 385k would do this for me.
Now Id need to pay capital gains on the profit, which would only be 23k.
Is this correct?
Paullie wrote:Now Id need to pay capital gains on the profit, which would only be 23k.
Is this correct?
Hard to say.
The CGT calculation will be dependent on your taxable income during the period, date the asset was purchased and sold, etc.
Here's a calculator that might help http://www.yourmortgage.com.au/calculators/capital_gains_tax/
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You should also take into account the total purchase cost. This is the purchase cost of the property plus stamp duty, solicitors fees, other legal costs, etc.
DAMProperty | DAM Accounting Services
https://www.damaccountingservices.com.auVery true.
Where is the property located if you don't mind me asking? I would be interested to know which markets have seen 5-10% capital gains since December.
Cheers,
Luke
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