Happy New Year All!!!!
Just wondering if anyone knows has a forumla Calculating Capital Gains Tax in Microsoft Excel??
Cheers
Happy New Year Fredo,
Capital gains tax as I believe is just added to your taxable income so you fall into a tax bracket. I think I have made up a quick spreadsheet with this before, where you simply enter your taxable income, and your capital gains, as well as ticking a box if you had the property for over a year or not to reduce the capital gains by 50%.
One question, when you reduce it by 50%, do you reduce the tax paid by 50%, or is the actual capital gain reduced by 50%. It may sound confusing but I am not sure if you pay half the tax at the potentially higher tax bracket, or you get taxed on a lower capital gains. Hope that makes sense.
Anyway Fredo just send me a message with your email I can flick it on to you
The formula would need to take into account a number of variables
1. Structure. Company no CGT discount. Other structures get the 50% cgt discount.
2. If asset held for less than 12 months then no discount otherwise consider structures and whether discount applies.
3. Calculating cost base. What to include what not to include.
4. Calculating reduced cost base. Make sure capital allowance deductions are used to reduce cost base.
5. Small business CGT concessions. How these are built into the formula. Can be applicable for various types of property investments as the small business CGT concessions can and do apply (in particular circumstances)Structure. Company no CGT discount. Other structures get the 50% cgt discount.
Unless purchased using a SMSF when you get 33% discount not 50%.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Also if joint ownership splits the gain 50% to each owner .
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