Our friend, CGT

CGT appears to be a wonderful tool, for some. Marital arrangement have force the sale of three rental properties, all in my name. My understanding is after deducting all the selling and legal costs involved in the sale from the profit from the properties, 50% graciously received by the Government, the remaining 50% is included on my tax return. So my taxable income is artificially inflated, what a wonderful idea a little like double taxation, if only the government taxation received was used resourcefully.
Please confirm my CGT thinking.
All purchasing costs and repairs have been accounted for over the life of the rental properties.
Regards
John

 

CGT would generally be a max of 22.5% plus medicare if you had owned the property longer than 12 months. But would only be this high if earning more than $180,000. CGT could be as low as nil though

 

You’ve got it a bit wrong, (Edit- if owned for longer than a year) 50% is tax free, other 50% gets added to your taxable income. Sometimes selling in two different tax years may help. Depreciation gets added back in. (Onto cost base I think!!) Is there any you could keep and move into as part of the settlement?

 

Read this CGT when selling your rental property

 

Dont assume your MUST sell. Many people who bust up think his and then sell and realise afterwards they triggered tax that wasnt required. Get legal advice THEN tax advice onece you have some ideas about which way the property split may fall. Purchasing costs WILL NOT have been deducted previously. The original costbase plsu duty plus legals plus selling costs less depreciation claimed may be the reduced costbase and determine any profit. Of which 50% is taable to each owner. Any tax is also a laibility and a factor in the "assets and laibilities" for the divorce. Not just gross profit.

 

I am not a tax advisor but what I can tell you is this, when you first start to feel through the Australian tax "brail " system , your fingering touch will eventually wrap around the most unusual set of roundly objects, these unusual set of rounded objects are the manhood of the Australian "lifestyle:" monetary system, ...these delicate / warm / ambrosia type of " a tout de suite" will serve you great enjoyment at the time, but please be warned, the system is set to trap you, to bend you over and extract everything lifelike from your living / working cracass

 

That sort of attitude doesnt help.

 

Dear, if your mind wasn't so incarcerated in concrete, then maybe you would see the forest for the trees, right? what do you think this country runs on? oil and gas?

 

God forbid you pay some tax when you make some money.

 

I already demonstrated quite clearly, how much tax I pay

hows life going for you in the "lower" bracket?

 

Where?

All I saw from you was some weird homo-erotic metaphor where you were complaining about paying tax.

 

That's a bit harsh

 

Is that what it was.

I had no idea - thanks for the clarification.

How much tax one pays is not a KPI I use to measure one’s success .

IMHO how little tax one pays is a better KPI .

For the record, after years of paying shiploads, I now (legally) pay none. Hence, in my eyes, I am very successful .

 

So in this situation your name is on title (even though you are married) so when you sell to distribute the funds from the asset(s) capital gains tax is payable, but what I want to know is if the "profit" (assuming there is profit) becomes taxable income for who ?
You as the titled owner, or both you and your Ex ???