If selling 50% share in an investment property, how is the capital gains tax calculated?
You would pay capital gains tax on the increase in value of the property since you purchased it. Since you are only selling 50% then you would pay capital gains tax on the portion you sold. Your accountant will help you with this. You may to pay the tax in the next financial year.
So, best to put this money decide so that you're not short when the text meant come calling. Again, talk to your accountant about this one.
It depends on your tax position but the general rule is that you pay tax on 50% of the amount you gained from the sale of the asset.
If you made $100,000 on the sale then you would pay tax on $50,000. This amount would be added to your taxable income in that financial year.
There are three ways that CGT are calculated and the choice of method is determined according to your situation. And whichever method is used, you will pay CGT on your share (50%).
Generally, a capital gain is the difference between your capital proceeds and the cost base of the CGT asset. The three methods differ in the way in which the cost base is determined which will depend on when you acquired and how long the asset was held for. So to answer your question I would need information.
An interest in an asset is treated as an asset. That is.. A 50% interest is the whole of "your asset".
Capital gains tax is generally payable on 50% of the gain (provided the asset is owned for more than 12 months).
The net capital gain (after 50% discount) is added to the taxpayers taxable income in the year that the gain arises.
Michael. Hi. I have noted your question with interest and based on your previous questions I am going to assume two things.
1) the property is held for investment purposes (potentially you also hold equity in an owner occupied property? ) and
2) you are going through a family separation.
If I am correct, I have been there on a personal basis and could provide you with some good suggestions once knowing your full position. My suggestions of course would be subject to Accountants confirmation and I could link you up with quality advice in this area if needed.
If you would like to chat more with someone who can associate with your circumstances, then please make contact on a direct basis.
Look forward to hearing from you
1300 ASK KEN