Hi,
Quick question (couldn't find after searching the site).
If I buy a block for $100,000, build a house on it costing $500,000 and sell it after 2 years for $700,000 how much capital gains tax do I pay?
Is the capital gain $100,000? And if I had the place repainted after a year costing $20,000, would the capital gain now just be $80,000?
So would my tax bill be 50% of my income tax rate on $80,000?
Cheers in advance
Quick question (couldn't find after searching the site).
If I buy a block for $100,000, build a house on it costing $500,000 and sell it after 2 years for $700,000 how much capital gains tax do I pay?
Is the capital gain $100,000? And if I had the place repainted after a year costing $20,000, would the capital gain now just be $80,000?
So would my tax bill be 50% of my income tax rate on $80,000?
Cheers in advance