Hi,
Can anyone advise on the following, regarding the below rough Capital Gain Tax calcualtions?
If an Australian property which was lived in for over 12 months then rented as an investment property was sold by an Australian tax resident 1 month over the 6-year rule has ended, So 6 years and 1 month of renting the property.
Would the rough liable captial gains tax paid be $633.00 Tax, as per the below example ?
- Total Capital gain - $250,000.00.
- 1 month past the 6-year rule ending = 1/73 months = $250,000.00 / 73 = $3,424.00 X 1 month = $3,424.00
- 1 month Taxable capital gain income - $3,424.00 * 50% rule = $1,712.00
Marginal Tax rate of 37c
Tax payable = $1,712.00 * 0.37 = $633.00
Or
Alternatively, if the same property was sold 12 month over the 6-year rule
Would the rough liable tax paid be $6,607.00 Tax, as per the below example ?
- Capital gain - $250,000.00.
- 12 months passed the 6-year rule ending = 12/84 months = $250,000.00 / 84 = $2,976.00 X 12 Months = $35,714.00
- 12 month Taxable capital gain income - $35,714.00 * 50% rule = $17,857.00
Marginal Tax rate of 37c
Tax payable = $17,857.00 * 0.37 = $6,607.00
Thank you in advance
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459 views
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