Hi everyone,
Can someone explain to me in English how capital gains works. I have a fair idea. I have 2 x ip but have never sold any. Does it go on your income for that financial year aswell. Am I right to say that if you ever do sell, you shouldn’t sell in the same year or am I barking up the wrong tree.
I am not looking at selling, but I guess one day in the future I will.
HI Shelley,
Taxable gains are added to your ‘normal’ income and taxed at the prevailing rate.
Issues such as capital costs, building depreciation, selling costs, period of ownership all come into play when finalising your bill.
As a rule if you do sell – stagger and if possible sell in a no or low income year to minimise tax.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Hi ShelleyD
I believe it is calculated on 50% only of the nett gain if you have the property for longer than 12 months.
Also there has been extensive talk on this subject and you can do a search using the “search” under “forum boards” at the left of this page.
Cheers LenHI Shelley,
The ATO website also a booklet that explores a great many issues associated with CGT. Do a search and download the pdf file. If you need a hand send me an email and I’ll send you a copy by return mail.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Derek,
You are a good guy.
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Mortgage Hunter,
Isn’t he just. thanks everyone, I will so some of the recommended research. I think I was on the right track though. The tax man has to get you somewhere don’t they. You know the more I delve into all of this property stuff I am quickly coming to the understanding that it is not how much money you make, but how much you know, do you agree?
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