hello I have question I have a house that I bough for $92000 in September 2000 it was my residence for 2 years because I bough other house so this property is a investment now my question is that now I owe $170000 so how do you calculate the cgt if I want to sell it property valuation now is $ 255000
What you owe is irrelevent for CGT calcs.
Roughly speaking (I am not an accountant), it is calculate like this:
Sale price $250,000
less purchase $92,000
= $158,000
You can minus some costs such as stamp duty etc, but may have to add back some things suxh as any depreciation claimed.
-$8000 costs (guess)
= $150,000 Capital Gain
Since you have held it more than 12 months, this is reduced by 50%
= $75,000 taxable capital gain.If you are the sole owner, then this would be added to your other income, and you would pay tax accordingly.
Terryw
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Parramatta
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Minus the time you had it as a PPoR
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorHi again.
Thanks Rdwing, I missed that.
If you actually lived in the house before renting it out, then there is possibly no CGT payable – if you haven’t claimed another house as your main residence at the same time.
Terryw
Discover Home Loans
Parramatta
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Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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