I have simplified the numbers (e.g. haven’t added any capital costs, purchasing costs etc…) but my situation is this;
This has been an IP from day 1
Purchase Price 180K – January 2003, 50/50 between me/wife
Wife Transferred her 50 to me in December 2007 D)
During this transfer, house was valued (by an agent) @ 210K
So, CGT was calculated for my wife for her tax in 2008 as follows;
210K – 180K = 30K. Due to the fact that holding the prop for more than 12 months, 50% rebate;
15K, and only 50% ownership, 7.5K was the CGT amount for my wife.
During my tax return, 50% ownership period and 100% ownership period was handle separately and all was good.
I’ve sold the property in 2012 for 305K. Even though I use an accountant, I’d like to have an idea as well on how the CGT is calculated. I tried to look in this forum as well as ATO but couldn’t find a similar scenario.
Here’s how I’ve done it;
My cost base, 50% of 180K + 50% of 210K => 195K
CGT = 305K-195K => 110K
Since I had the property for more than 12 months, I get 50% rebate, so CGT is 55K.
Is this correct?
This has been an IP from day 1
Purchase Price 180K – January 2003, 50/50 between me/wife
Wife Transferred her 50 to me in December 2007 D)
During this transfer, house was valued (by an agent) @ 210K
So, CGT was calculated for my wife for her tax in 2008 as follows;
210K – 180K = 30K. Due to the fact that holding the prop for more than 12 months, 50% rebate;
15K, and only 50% ownership, 7.5K was the CGT amount for my wife.
During my tax return, 50% ownership period and 100% ownership period was handle separately and all was good.
I’ve sold the property in 2012 for 305K. Even though I use an accountant, I’d like to have an idea as well on how the CGT is calculated. I tried to look in this forum as well as ATO but couldn’t find a similar scenario.
Here’s how I’ve done it;
My cost base, 50% of 180K + 50% of 210K => 195K
CGT = 305K-195K => 110K
Since I had the property for more than 12 months, I get 50% rebate, so CGT is 55K.
Is this correct?