Forums / Property Investing / Help Needed! / cgt for a pensioner

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  • Profile photo of beerboybeerboy
    Participant
    @beerboy
    Join Date: 2003
    Post Count: 55

    howdy. if a pensioner(no tax bracket) buys a block of land and on sells within 12 months do u have to pay cgt. cheers.

    Profile photo of xyzzyxyzzy
    Participant
    @xyzzy
    Join Date: 2003
    Post Count: 178

    The australian tax system is based on self assesment. We can write what we like on our returns and the ATO will accept them.

    If they do an audit on you well then it might help to have done the right thing.

    In this case you should declare it as a CGT event and pay tax on it at the marginal rate.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    of course. Everyone has to pay tax. How much will depend on how big the profit is. If the pensioner has no income (but i think the penson is taxable income??), then they can make $6000 profit and pay no tax. This may equate $12,000 profit before the 50% CGT discount is taken off.

    Terryw
    Discover Home Loans
    North Sydney
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    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of beerboybeerboy
    Participant
    @beerboy
    Join Date: 2003
    Post Count: 55

    thanks for the advice.

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