All Topics / Legal & Accounting / Capital Gains Tax Formula for Microsoft Excel

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  • Profile photo of fredo_4305fredo_4305
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    @fredo_4305
    Join Date: 2009
    Post Count: 336

    Happy New Year All!!!!

    Just wondering if anyone knows has a forumla Calculating Capital Gains Tax in Microsoft Excel??

    Cheers

    Profile photo of James2118James2118
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    @james2118
    Join Date: 2010
    Post Count: 27

    Happy New Year Fredo,

    Capital gains tax as I believe is just added to your taxable income so you fall into a tax bracket. I think I have made up a quick spreadsheet with this before, where you simply enter your taxable income, and your capital gains, as well as ticking a box if you had the property for over a year or not to reduce the capital gains by 50%.

    One question, when you reduce it by 50%, do you reduce the tax paid by 50%, or is the actual capital gain reduced by 50%. It may sound confusing but I am not sure if you pay half the tax at the potentially higher tax bracket, or you get taxed on a lower capital gains. Hope that makes sense.

    Anyway Fredo just send me a message with your email I can flick it on to you

    Profile photo of omegapartnersomegapartners
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    @omegapartners
    Join Date: 2010
    Post Count: 17

    The formula would need to take into account a number of variables

    1. Structure. Company no CGT discount. Other structures get the 50% cgt discount.
    2. If asset held for less than 12 months then no discount otherwise consider structures and whether discount applies.
    3. Calculating cost base. What to include what not to include.
    4. Calculating reduced cost base. Make sure capital allowance deductions are used to reduce cost base.
    5. Small business CGT concessions. How these are built into the formula. Can be applicable for various types of property investments as the small business CGT concessions can and do apply (in particular circumstances)

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Structure. Company no CGT discount. Other structures get the 50% cgt discount.

    Unless purchased using a SMSF when you get 33% discount not 50%.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of ducksterduckster
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    @duckster
    Join Date: 2004
    Post Count: 1,674

    Also if joint ownership splits the gain 50% to each owner .

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