Capital Gains Tax

Discussion in 'The Buying & Selling Process' started by Darlinghurst Boy, 7th Aug, 2015.

Join Australia's most dynamic and respected property investment community
  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    858
    Location:
    Darlinghurst Sydney
    im in NSW just wondering how much CGT is if I buy a property and sell it 3 months after buying it for say approx $40,000
     
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    CGT is commonwealth tax so the state is irrelevant. $40k profit less costs would be added to your income.
     
  3. Nicho32

    Nicho32 Member

    Joined:
    7th Aug, 2015
    Posts:
    13
    Location:
    Melbourne
    It depends on your income tax rate
     
  4. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    858
    Location:
    Darlinghurst Sydney
    Is it the first 12 months after buying the property that you pay CGT on selling?
     
  5. Jacque

    Jacque Jacque Parker Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,652
    Location:
    Sydney
    If you hold an investment asset for more than 12mths the CGT is halved ie: 50% is calculated as profit instead of 100% This was put into place to discourage speculative buying.
     
    Irosh Bandara likes this.
  6. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    858
    Location:
    Darlinghurst Sydney
    Is it only on investment properties? Im wondering if i change my address and move there then i would be exempt from CGT?
     
  7. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    haha....Wont work, otherwise I suspect the average home move rate of PropertyChat members would dramatically increase overnight :D
     
  8. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    Main residence would be exempt in most situations. But you can only have 1 main residence at any one time.
     
  9. Jacque

    Jacque Jacque Parker Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,652
    Location:
    Sydney
  10. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    Its worked out on a pro rata basis. So for the period it was an IP you still have to pay CG.
     

Build Passive Income WITHOUT Dropping $15K On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia