What is ‘Capital Gains Tax’?
Here at Mortgage Choice in Robina, on the Gold Coast, one of the questions we are often asked is ‘What is a Capital Gains Tax?’
Capital Gain (or Loss) is usually associated with an asset perceived as an investment. It does not usually relate to most personal assets or assets for personal use such as your home, car or furniture.
If you hold an asset (other than for personal use) that was purchased on or after 20th September 1985, you may be liable to pay Capital Gains Tax on any profit that you make when you sell it.
For example: In 1999, John and Mary purchased an investment property in Robina on the Gold Coast for $150,000. They have decided to sell this investment for $550,00 making them a profit of $400,000. As this was not their primary residence and used for the purposes of investment, it would be important for John and Mary to speak with their accountant before they sell as this profit may attract Capital Gains Tax.
For Australian residents Capital Gains Tax applies to any assets, worldwide and usually refers to the profit made from the sale of an investment / asset.
We recommend speaking to a Mortgage Choice financial advisor, an accountant or the Taxation Office for any question regarding Capital Gains Tax. Additional information is available at https://www.ato.gov.au/General/Capital-gains-tax
When you’re looking for a home loan, speak?with the home loans specialist. Renee Polden, Mortgage Choice in Robina, your? Mortgage Broker on the Gold Coast.