CGT claculation basic

[sanjayag]

Hi all,
A basic question to confirm my understanding:

IP purchase price: 100K
Depreciation claimed in 2 yrs: 20K
Selling price after 2 yrs: 150K
Capital gains: 150K-(100K-20K) = 70K (is that right?)
So taxable amount: 50% of 70K (correct?)

What other costs/expenditures are addedd?

Thanks
Sanjay

 

[Aaron_C]

You add things like stamp duty to your cost base so you reduce the capital gain. Also things like conveyancing fees etc.

 

[sanjayag]

Thanks Aaron.
Do we add the LMI to the cost base as well?

 

[dan c]

Thanks Aaron.
Do we add the LMI to the cost base as well?

No. LMI is a borrowing cost, and is deductible over 5 full years, or the length of the loan, whichever is shorter.