cgt for companies

[de nero]

Do companies pay cgt at the company rate of 30% for capital gains on property?

 

[Sunfish]

A company would pay 30% on the full gain whereas an individual would pay the marginal rate on 50% of the gain if held over 12mths.

I'm not a professional and could be corrected.

Thommo

 

[DaleGG]

Hi Thommo

A company is not eligible for the 50% CGT discount and so it would pay tax on every dollar of CG at 30%.

Dale

Originally posted by Thommo
A company would pay 30% on the full gain whereas an individual would pay the marginal rate on 50% of the gain if held over 12mths.

I'm not a professional and could be corrected.

Thommo

 

[Learner]

Hi Dale,

In regards to your response as silly as the question may sound i will throw it out anyway. The CGT an individual would be is it directly related to the tax matrix or is the some other rate the government apply to it....ie if it falls into say 20-30k you pay at 40% in the dollar and 31k-100k 45% in the dollar, my assumption is that it would be directly applied to the tax matrix...

Thanks in advance

Learner

 

[Sunfish]

Buddyell Learner. Does mean "at the tax payer's marginal rate?"

 

[Aceyducey]

Learner,

CGT is not a REAL tax, it's simply the profit on the sale of a profitable asset being treated as part of your income for tax purposes.

Thus take your gross income, add the profit from the asset & that's your taxable income for the year (adjusted by a few factors such as the 50% discount & PPOR exemptions).

The tax you pay will be based on this amount.

Cheers,

Aceyducey

 

[Learner]

Acey

Thanks for your response, greatly appreciate the clarification.

Thommo

Sorry were not as informed as what you are....please excuse my ignorance