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Understanding & Managing Capital Gains Tax on Property Sales

Posted By RK Taxation  
12/06/2024
12:00 PM

Capital gains tax (CGT) can significantly impact your financial return on property investments. Understanding how to manage this tax is crucial for property sellers.

  1. CGT Calculation: CGT is calculated on the difference between the sale price and the purchase price, adjusted for costs like improvements and selling expenses.
  2. Exemptions and Concessions: Primary residence exemption and other concessions can reduce CGT liability.
  3. Timing of Sale: Timing can affect CGT liability; selling after owning the property for more than a year typically results in a 50% CGT discount for individuals.
  4. Record Keeping: Maintain detailed records of purchase, improvement, and sale costs to accurately calculate CGT.

Effective CGT management involves strategic planning and understanding applicable exemptions. Consult with a tax advisor to navigate complex scenarios and optimize your tax outcome.