smile0784 wrote:Just to clarifyskouta wrote:This is not financial advice...
I am going through a Capital Gains event now.
In your example if it is an Investment Property.
Bought for $245K
Sold for $400K
Capital Gain = $155K
Less 50% Discount if held property for over 1 year = $77.5K
Less, Insurance, Interest, Rates, Maintenance, Repairs, legal costs and possibly more.
Let's say this dropped it down to $50K after you remove all of the above deductible expenses.
If the property is in one name then the $50K would be declared income and added to your income tax, if 2 names the $50K would be split to $25K extra each declared in your incomes.. So if it was only in one name and you were earning and paying tax normally on $100K you would add the $50K for this tax year and would therefore be earning $150K and paying income tax on the full $150K.
So you keep some of the sale money aside as it can be next year you will be doing your tax.
I'm not an accountant but this is what my accountant has told me as we are going through this at the moment. Speak to your accountant this is nothing new for them...
You say i can claim interest
So roughly $1000 interest per month x 8 years =96k but rent covered that
Or do you mean interest over the mortgage income? Or only Like when house in empty about 9k
Rates over 8 years roughly 11k
Maintenance over 8 years 20k
Samp duty and conveyancing when buying 12k
Selling cost 7 or 8k maybe lol
Thats about 63k with out interest of possible 9k
And sure theres more
Is that correctish?
What happens when CG looses excees CG tax?
I presume i wouldnt pay any taxes
This where your accountant can help you. The Interest can be tricky and I'm not 100% sure on it. We sold a holiday home that wasn't used to create income and didn't have any interest costs so you will need that one checked.
With regards to a Capital Loss you claim this on another Capital Event in the future so it just sits there ready to use when you next need it.