Quick Sell
- Thread starter Ben
- Start date
Can't even begin to think what you might be up for, but strongly recommend you read from page 204 in Jan Somers' book "More wealth from Residential Property". The changes in the tax laws, etc are very simply described there and she gives lots of examples.
Ben
check out the Australian Taxation Office website
www.ato.gov.au
This will have all the information you need
Cheers
Kristine
check out the Australian Taxation Office website
www.ato.gov.au
This will have all the information you need
Cheers
Kristine
Re: Quick Sell - Real Profit...
Hi Ben,
Can anyone give me an idea of what amount $ of CGT I would have to pay on prop I sold shortly after buying for a profit of $30,000 if my income is appox $40,000 pa???? Just an estimate pls.... [/QUOTE]
Gross Income $40,000
LESS Stamp Duty
Conveyancing
Capital Gains Tax
(GST does it apply?)
= Your net profit... after all expenses
But lets "assume" (ass of you and me)...
$40,000 on top of your income = $ ???????????
Please post the answer...
Ross Sondergeld
Creative Real Estate Solutions
P.S. Yeh... I've changed my business name... and I'm using the same business name as the Great Grand Daddy of buyer agency... (Bill Broadbent, California.)
Hi Ben,
Can anyone give me an idea of what amount $ of CGT I would have to pay on prop I sold shortly after buying for a profit of $30,000 if my income is appox $40,000 pa???? Just an estimate pls.... [/QUOTE]
Gross Income $40,000
LESS Stamp Duty
Conveyancing
Capital Gains Tax
(GST does it apply?)
= Your net profit... after all expenses
But lets "assume" (ass of you and me)...
$40,000 on top of your income = $ ???????????
Please post the answer...
Ross Sondergeld
Creative Real Estate Solutions
P.S. Yeh... I've changed my business name... and I'm using the same business name as the Great Grand Daddy of buyer agency... (Bill Broadbent, California.)
Hi Ben,
What bbruham said is correct but only if the total of your income and your capital gain was under $50,000. Based on your figures, your net capital gain is $30,000 (50% discount does not apply becaus you held the IP for less than 12 months). Therefore your total income is $70,000, making you liable for $21,435 tax (inc medicare levy). If you haven't sold the IP your tax on $40,000 would've been $9,040. The difference $21,435 - $9,040 = $12,395 is your CGT. This is about 44% of your profit.
Say cheese
Lotana
What bbruham said is correct but only if the total of your income and your capital gain was under $50,000. Based on your figures, your net capital gain is $30,000 (50% discount does not apply becaus you held the IP for less than 12 months). Therefore your total income is $70,000, making you liable for $21,435 tax (inc medicare levy). If you haven't sold the IP your tax on $40,000 would've been $9,040. The difference $21,435 - $9,040 = $12,395 is your CGT. This is about 44% of your profit.
Say cheese
Lotana
Ben,
If the IP is held in individual name the 50% discount would apply after 12 months. For full CGT exemption it originally had to be your PPOR, plus some other conditions. To take everything right from the beginning you would need to see a good property accountant who may suggest the best structure and explain all the nuts and bolts relevant to your particular situation.
Say cheese
Lotana
If the IP is held in individual name the 50% discount would apply after 12 months. For full CGT exemption it originally had to be your PPOR, plus some other conditions. To take everything right from the beginning you would need to see a good property accountant who may suggest the best structure and explain all the nuts and bolts relevant to your particular situation.
Say cheese
Lotana
