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Capital Gains Tax

Capital Gains Tax

Old Jul 21st 2009, 1:14 am
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Default Capital Gains Tax

Looking through the ATO sites and getting a head ache.

Will be going to Tax agent later but like to be imformed.

Bought house for $95000 in 2003 sold $210000 in 6/2009 purely investment.

So the Capital Gain is $115,000 less expenses. (50% deduction)

Now this is where am unsure on some things. What expenses can I claim.

Stamp Duty
Legal Fees
Selling Fees
Capital improvements

Have claim through the years, council, water repairs etc, are any of these included in the CGT? Anything I have missed?

Cheers.
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Old Jul 21st 2009, 2:48 am
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Default Re: Capital Gains Tax

Any costs that you haven't previously claimed against Income Tax, can be claimed against Capital Gains.

So if you made $115,000, and offset $15,000 expenses, then your gain is $100,000, cut down to a taxable figure of $50,000, by the 50% exemption.

That is then added to your normal income and taxed at whatever tax band you come into.
 
Old Jul 21st 2009, 7:52 am
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Default Re: Capital Gains Tax

Thanks, greatly appreciated
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Old Jul 21st 2009, 11:20 am
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Default Re: Capital Gains Tax

Did you claim depreciation from year to year? If so then I think you might have to lower the cost base (i.e. the price you paid) for the gain calculation.

Not looked at this fully myself yet not 100% about the ins and outs.
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Old Jul 23rd 2009, 1:54 am
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Default Re: Capital Gains Tax

Originally Posted by Siren & Brian
Bought house for $95000 in 2003 sold $210000 in 6/2009 purely investment.

So the Capital Gain is $115,000 less expenses. (50% deduction)

Now this is where am unsure on some things. What expenses can I claim.

Stamp Duty
Legal Fees
Selling Fees
Capital improvements

Have claim through the years, council, water repairs etc, are any of these included in the CGT? Anything I have missed?.
You can claim the legal fees and selling fees. Legal fees for purchase and sale and selling fees are added to the original purchase price of the house. The capital improvements are also added to the original cost of the house (unless you have claimed depreciation over the years - then they are treated differently).

Finally: because you have had this hosue for more than 12 months, the capital gain is halved. Let's say for argument's sake, the gain really is $115,000. Then only $57,500 is assessable. And if the house is held in joint names, half of that is assessable in each person's tax return (i.e. $28750).
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