How Does CGT Work

[macca446]

Hi All,
This is new to me and would like to know how to calculate as I am selling down my portfolio and will have capital gains on my properties,lets say I payed 250k and property sells for 390k and I have had losses for the 8 years of ownership do you deduct losses from gain and then pay cgt on 50%.

thanks

 

[D.T.]

Sellprice minus buy price = CGT
Divide that by 2 if held for more than 12 months.
Purchasing costs and selling costs can also come out.

That then goes onto your tax return and tax gets paid at the appropriate bracket depending on how much it is.

You've been claiming a tax refund for the years of ownership, so why would they come up again?

 

[macca446]

Sellprice minus buy price = CGT
Divide that by 2 if held for more than 12 months.
Purchasing costs and selling costs can also come out.

That then goes onto your tax return and tax gets paid at the appropriate bracket depending on how much it is.

You've been claiming a tax refund for the years of ownership, so why would they come up again?

Thanks for info

 

[macca446]

I think someone has asked this ,if I sell property less than 2 years of ownership do I pay CGT.
Thanks

 

[D.T.]

I think someone has asked this ,if I sell property less than 2 years of ownership do I pay CGT.
Thanks

Of course.
You pay CGT if even one day of ownership.

 

[macca446]

Of course.
You pay CGT if even one day of ownership.

Thanks DT my mind is not working to well lately.

 

[Lawry]

Don't forget you might need to make an adjustment for depreciation