Capital gains simplified

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smile0784
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Capital gains simplified

Postby smile0784 » Wed Jun 13, 2018 6:59 pm

Can some explain capital gains to me so i can explain it to my wife cos i cant explain it correct.

Bought 245k
Hopefully sell for 400k
Different 155k

I told her half is paid direct but the other half is given as a income and it taxed but she doesnt unstand how we get it or how capital expenses are applied or to which section they applied too. 1st half 2nd half or total.

Is there a simple way to explain it cos i cant find a simple way online



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phil1818
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Re: Capital gains simplified

Postby phil1818 » Wed Jun 13, 2018 7:02 pm

Take her to your accountant

smile0784
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Re: Capital gains simplified

Postby smile0784 » Wed Jun 13, 2018 7:29 pm

She doent like my accountant lol.
She never used a accountamt till i took her to mine and then the next year.she did her tax her self online and got more back so said she not going back lol

rb85
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Re: Capital gains simplified

Postby rb85 » Wed Jun 13, 2018 7:33 pm


Fishnhook
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Re: Capital gains simplified

Postby Fishnhook » Wed Jun 13, 2018 7:38 pm

You half the 155 grand and you pay tax on that amount.
Last edited by Fishnhook on Wed Jun 13, 2018 7:41 pm, edited 1 time in total.

smile0784
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Re: Capital gains simplified

Postby smile0784 » Wed Jun 13, 2018 7:39 pm

Thanks for.that explains a.bit.more



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smile0784
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Re: Capital gains simplified

Postby smile0784 » Wed Jun 13, 2018 7:43 pm

So ill get paid the 155 to me then i pay tax on 75 k ish.

So i should keep 7000 in my account to pay to tax at end of tax year onto of the tax i pay onto wage

rb85
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Re: Capital gains simplified

Postby rb85 » Wed Jun 13, 2018 7:43 pm

You can use a capital loss to offset your gains e.g. Bad share investment loss of 5000 you can offset that from your gain. The amount your CGT is will depend on factors such as your Tax rate how long you or if you lived in the property etc.

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skouta
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Re: Capital gains simplified

Postby skouta » Wed Jun 13, 2018 7:45 pm

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...
"I only caught one - the rest surrendered"

phil1818
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Re: Capital gains simplified

Postby phil1818 » Wed Jun 13, 2018 7:49 pm

It’s not all that simply lads it also works on a sliding scale based on how long you have owned it, if you buy and sell within say 12 months you pay maximum capital gains and it decreases the longer you own in.. i had one for 10 years and made a $450k profit and paid a few grand if that



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