Approx CGT calculation - please check

Discussion in 'The Buying & Selling Process' started by Valentino, 11th Oct, 2017.

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  1. Valentino

    Valentino Well-Known Member

    Joined:
    21st Aug, 2016
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    Location:
    NSW
    to work out approx CGT we would pay on selling an IP, is this calculation correct ??

    $550000 sale price - $385000 purchase price
    =$165000

    X 0.5 (held for 12mo +)
    =$82500

    X0.33 (tax rate)
    =$27500 CGT paid
     
    Valentino, 11th Oct, 2017
    #1
  2. qak

    qak Well-Known Member

    Joined:
    1st Jun, 2017
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    Location:
    Sydney
    Probably near enough. Also consider purchase costs (legals, inspections, stamp duty etc) & selling costs (legal, commission etc) which should reduce the gain a bit.

    The actual tax rate will depend on any other income you might have.
     
    qak, 11th Oct, 2017
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
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    Location:
    Australia wide
    How did you get a 33% tax rate?

    Any taxable gain is added to your other income.

    What about the cost base calculations?
     
    Terry_w, 11th Oct, 2017
    #3