CGT calculator
- Thread starter Carrot01
- Start date
You pay income tax on a capital gain. It is included in income tax return(s) depending on the entity that owns the property. . My strong message is to see an accountant if you are thinking of selling your IP, as you can save a lot of income tax by doing tax planning around the event.
the 580k does not include stamp duty etc - that was another 20k
selling costs of ip are $11k plus 7k in break fees on the loan
ip is in my name
i havent sold the place yet, but I'm about to list it with an agent - if i dont make a reasonable amount I will keep it.
thanks again for your help
selling costs of ip are $11k plus 7k in break fees on the loan
ip is in my name
i havent sold the place yet, but I'm about to list it with an agent - if i dont make a reasonable amount I will keep it.
thanks again for your help
Don't have sufficient information
1. What was the opening balance of the plant and equipment that made up the purchase price ?
2. What was the closing balance of the plant and equipment that made up the sale price ?
3. What Division 43 Capital Allowances have been claimed during the time it was an IP ?
4. Was the property ever your main residence ?
5. Are you resident or non-resident for tax purposes.
6. What was the original intention on acquisition ?
Too many unanswered questions which would make the calc at present meaningless
1. What was the opening balance of the plant and equipment that made up the purchase price ?
2. What was the closing balance of the plant and equipment that made up the sale price ?
3. What Division 43 Capital Allowances have been claimed during the time it was an IP ?
4. Was the property ever your main residence ?
5. Are you resident or non-resident for tax purposes.
6. What was the original intention on acquisition ?
Too many unanswered questions which would make the calc at present meaningless
1. purchase price was 580k + 20k fees
2. selling price 660k minus selling fees of 11k
3. not sure what you mean by that, but ive spent $500 on the place in 2 years in maintenance.
4. No.
5. aussie born & bred
6. negative gear, make some capital growth & possibly knock it down/rebuild for a new PPOR.
thanks, I hope that helps a bit
2. selling price 660k minus selling fees of 11k
3. not sure what you mean by that, but ive spent $500 on the place in 2 years in maintenance.
4. No.
5. aussie born & bred
6. negative gear, make some capital growth & possibly knock it down/rebuild for a new PPOR.
thanks, I hope that helps a bit
600K cost base
649 net proceeds
$49K capital gain
$24.5K net capital gain
47% tax rate = $11,515 tax payable
Why would you want to sell it now?
There may be good reasons but paying an additional $7k break fees (fixed rate loan?) does not seem to make much sense if you do not need to.
Why not wait until out of fixed period?
The tax is effectively paid when you submit your tax return for the year in which the property is sold as per date of contract of sale. This close to 30 June, I suggest you wait until at least July until you sign a COS to sell if you need to sell. If you are using a tax accountant for your tax return, they will have until May 2017 to submit the return. If you are going to incur the additional tax, why not defer paying as long as you can?
As Sunnybill suggests, see a good tax accountant as there are ways to help minimise tax through effective planning now.
A property cycle is normally 7 to 10 years and selling within 2 years seems a little prompt, especially for a property giving 6.8% pa growth.
There may be good reasons but paying an additional $7k break fees (fixed rate loan?) does not seem to make much sense if you do not need to.
Why not wait until out of fixed period?
The tax is effectively paid when you submit your tax return for the year in which the property is sold as per date of contract of sale. This close to 30 June, I suggest you wait until at least July until you sign a COS to sell if you need to sell. If you are using a tax accountant for your tax return, they will have until May 2017 to submit the return. If you are going to incur the additional tax, why not defer paying as long as you can?
As Sunnybill suggests, see a good tax accountant as there are ways to help minimise tax through effective planning now.
A property cycle is normally 7 to 10 years and selling within 2 years seems a little prompt, especially for a property giving 6.8% pa growth.
