All Wrappers…..
Scenario : I buy a house for $60K, Wrap it for $80K.
The purchaser pays me out in three years (better rates). I have diligently paid all my tax on capital gains on every payment.Question : How is the closing Capital gains treated (when payed out).
Do I pay top marginal Rate or does the one year rule apply and I only have to pay 50% of top marginal rate [?][?][?]Look forward to your postings….
Enjoy
AD [:0)]
Andrew,
In your circumstance outlined here, my opinion is that when you are cashed out in three years time you would need to pay the balance of the CGT… probably on a gain of about $19,000.
Now, the actual amount of tax that you pay would depend on the entity you have purchased the property in and your own personal ‘structure’.
If you purchased it in a company, the you would pay tax at a flat 30% ($5,700).
In your own name you would get a 50% exemption, but you may pay at the top marginal rate???…???
I suggest you talk to Mark about this when you meet with him in the next few days.
Bye,
Steve McKnight
Edited by – [email protected] on 20/06/2002 12:11:40 PM
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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