Hi,
I half own an investment property with an ex. It’s a situation that I’m keen to move on from so selling is the only option as buyout is not happening.
The house was purchased for $290,000.
The IO loan stands at $274,700.
I estimate the house to sell for $340,000 – $350,000.
I am in 40% tax bracket.I’m estimating selling fees to be around $3k. Is this realistic?
What would the CGT be and what would I be left with after any profit is then halved between us?
Thanks
Hi Schmoo
In essence the figure would be
Net sale price say $340,000 (After agents fees etc) minus
Original purchase price after Increased adjustment for stamp duty paid and decreased adjustment for Capital Allowance previously claimed. Assume – $290,000 anyway.
Capital Gain = $50,000 / 2 = $25,000.
Assuming you had held the property for > 365 days then you would qualify for the concessional rate so 50% of $25,000 = $12,500.
Tax on $12,500 x 40% = $5000.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:Hi SchmooIn essence the figure would be
Net sale price say $340,000 (After agents fees etc) minus
Original purchase price after Increased adjustment for stamp duty paid and decreased adjustment for Capital Allowance previously claimed. Assume – $290,000 anyway.
Capital Gain = $50,000 / 2 = $25,000.
Assuming you had held the property for > 365 days then you would qualify for the concessional rate so 50% of $25,000 = $12,500.
Tax on $12,500 x 40% = $5000.
Cheers
Yours in Finance
Thank you for clarifying that for me!
It will keep my expectations realistic
I’m going to use that profit towards re-investing in a higher growth area with some positive cash flow this time… Fingers crossed.
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