To anyone who can offer suggestions/knowledge. I bought in Davoren Park SA in January 2006 for $85,000 this property is now priced around $140 to $150,000. So on paper the capital gains is at most $65,000. So how do I work out how much I would take home should I sell in the not to distant future. How do I work it all out? I have a mortgage on it of $54,000. I will only take your advice as exactly that. If I was more interested I would speak to my accountant. But any comments would be appreciated. Thanks in advance.
Capital Gains Tax in SA
- Thread starter mmmggg
- Start date
Firstly, CGT is a federal tax so is the same in every state in Australia.
Since you have held the property for more than 12 months then the capital gain amount is reduced by 50%, so your $65K (max) will become $32.5K, which is added to your income for the year in which you sign the contract to sell.
This will attract your marginal tax rate. The maximum tax payable would be approx $16K if you are on the highest tax rate.
So if you sell for $150K (nett of commission, legals etc), you will nett $134K after (maximum) tax, from which you will have to pay out your mortgage of $54K which will leave you with $80K in your hand.
Rough figures only.
Marg
Since you have held the property for more than 12 months then the capital gain amount is reduced by 50%, so your $65K (max) will become $32.5K, which is added to your income for the year in which you sign the contract to sell.
This will attract your marginal tax rate. The maximum tax payable would be approx $16K if you are on the highest tax rate.
So if you sell for $150K (nett of commission, legals etc), you will nett $134K after (maximum) tax, from which you will have to pay out your mortgage of $54K which will leave you with $80K in your hand.
Rough figures only.
Marg
is this your IP or PPOR ? i think u can avoid cgt if u move back into your property for 6 months ? anyone can correct me ?
i am thinking about selling my property. as well it is currently tenented for last year or so.
its my first home i lived in it for 1.5 years before moving out.
bought 180k (mortgage 90k) now value around 290-340k(70k mortgage) (thinking about selling and upgrading) can i avoid cgt if i move back for 6 months before selling ?
i am thinking about selling my property. as well it is currently tenented for last year or so.
its my first home i lived in it for 1.5 years before moving out.
bought 180k (mortgage 90k) now value around 290-340k(70k mortgage) (thinking about selling and upgrading) can i avoid cgt if i move back for 6 months before selling ?
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you can only avoid cgt on this property if you have not claim the cgt exemption on any other property during the time you did not live there ... in other words, if you considered any other property in australia as your principle place of residence.
if you rented while not living in the property, or live with parents/friends etc, then yes, you can avoid having to pay cgt for up to six years after moving out.
you can only claim one property as your ppor at a time (hence only one property is exempt at any given time) except for if you are selling and buying, then you have a max 6 month lapover period of grace.
if you did have another ppor during the time you moved out you will be charge cgt on the gain in value from the time you moved out of the home, until the time you moved back in.
i hope this makes sense
if you rented while not living in the property, or live with parents/friends etc, then yes, you can avoid having to pay cgt for up to six years after moving out.
you can only claim one property as your ppor at a time (hence only one property is exempt at any given time) except for if you are selling and buying, then you have a max 6 month lapover period of grace.
if you did have another ppor during the time you moved out you will be charge cgt on the gain in value from the time you moved out of the home, until the time you moved back in.
i hope this makes sense
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