Tax and Structures

Capital gains tax

Capital gains tax example

Fred’s new taxable income is $72,000 plus $25,000 giving a total taxable income of $97,000 in that year.

If he also had a capital loss that year of $10,000 on other investments, the net taxable capital gain would be $20,000 as shown in the table opposite.

Under this scenario, Fred’s total taxable income is now $72,000 plus $20,000 being $92,000.