Hi
Just wondering about cap gains. Do you get taxed twice on your cap gains? For example:
Assuming I had a cap gain of $20k (after CGT) and my yearly earnings were $30K would I then get taxed on my earnings of $50K? or just the $30K
Cheers
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]Hmm, I think only once. I think your capital gain less 50% would be added to your gross income to derive your total taxable income.
Thus for a gain of $20K, 50% or $10K would be added to your gross income.
Your income tax would then be recalculated, which you would be liable to pay I presume at next tax time ?
But you best wait for other replies to be sure.
cheers
You don’t get taxed twice.
If you’ve held the investment >12 months then the CG is discounted by 50%. This amount is then added to your other earnings to determine your taxable income.So, If you had a $20K CG and $30K in other earnings your new taxable income would be $40K.
Rod.
G’day Ms Elvis,
HWD007 and RodC are both right, but have possibly missed – or at least not mentioned – the most important part….
CGT ( Capital Gains Tax ) is only payable WHEN YOU SELL.
Therefore, if your strategy is “buy and hold” ie never sell, then you will NEVER pay CGT.
Please note that there are some other instances that may trigger a CGT event, such as in certain situations changing or transfering the ownership of a property ( or shares for that matter ). For example transfering the property from “Ms Elvis” to “Graceland Pty Ltd”, or “The Presley Family Trust” – ie from an individual to a company or trust, can trigger CGT.
As always, check with your accountant if in doubt.
Thanks,
BDM
Thanks BBM
I prob should have explained better in my post but yes I was asking about CGT after the sale of the property.
Thanks for all your answers
cheers
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