Capital gains tax explained

Discussion in 'Investment Strategy' started by PlatinumProperty, 3rd Jun, 2020.

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  1. PlatinumProperty

    PlatinumProperty Active Member

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    Reaching out to the PC family. Can someone explain capital gains tax. PPOR compared to investment properties?
     
    PlatinumProperty, 3rd Jun, 2020
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  2. Terry_w

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

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    That is a very broad question

    Traditionally capital gains were not taxed as they are not 'income' but in 1985 they were made into income by legislation so they are a form of 'statutory income'.

    CGT applies on the gain on a capital asset which is generally the proceeds of the sale/market value less the cost base. a 50% CGT discount might be available if held the asset for 12 months or more.

    Main residences might be exempt in many if not most cases, but not always.
     
    Terry_w, 3rd Jun, 2020
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  3. PlatinumProperty

    PlatinumProperty Active Member

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    Yes ok. So a main residence of 6 months would that be something that is exempt?
     
    PlatinumProperty, 3rd Jun, 2020
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  4. Terry_w

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

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    Terry_w, 3rd Jun, 2020
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  5. PlatinumProperty

    PlatinumProperty Active Member

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    PlatinumProperty, 3rd Jun, 2020
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  6. Archaon

    Archaon Well-Known Member

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    a tax on inflation
     
    Archaon, 3rd Jun, 2020
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