Tax and Structures


Capital gains tax

Capital gains tax example

In our previous example we assumed:

  • Fred’s taxable income was $72,000
  • Fred’s gross capital gain on the property sold was $50,000 ($470,000 – net sale proceeds, less $420,000 – cost base of the property, including purchasing costs).

Let’s assume Fred bought the property in Jan 2005 and sold it in Jan 2020.

He’s held the property for more than 12 months, so 50% of the gross capital gain is added to his assessable income. The other 50% is exempt from tax.

See the table opposite.