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Capital Gains Tax

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

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    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 Solicitor, Finance Broker, CTA Business Member

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    CGT is commonwealth tax so the state is irrelevant. $40k profit less costs would be added to your income.
     
  3. Nicho32

    Nicho32 Member

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    It depends on your income tax rate
     
  4. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Is it the first 12 months after buying the property that you pay CGT on selling?
     
  5. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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    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.
     
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  6. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    Is it only on investment properties? Im wondering if i change my address and move there then i would be exempt from CGT?
     
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    haha....Wont work, otherwise I suspect the average home move rate of PropertyChat members would dramatically increase overnight :D
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Main residence would be exempt in most situations. But you can only have 1 main residence at any one time.
     
  9. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

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  10. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Its worked out on a pro rata basis. So for the period it was an IP you still have to pay CG.