We Will Do It Together
Capital Gain Advisory
How We Can Help
Capital gains tax can be planned. It is important that you come to us BEFORE you deal with your assets. We can advise you to use various tax vehicle when purpose and choose the right
timing when dispose. Talk to us now to plan more and gain more, with less tax paid.
Helping You In The Pros And Cons
Book Your FREE Consultation
Capital Gain Tax
If you sell a capital asset, such as real estate or shares, you usually make a capital gain or a capital loss. This is the difference between what it cost you to acquire the asset and what you receive when you dispose of it.
You need to report capital gains and losses in your income tax return and pay tax on your capital gains. Although it’s referred to as capital gains tax (CGT), this is actually part of your income tax, not a separate tax.
When you make a capital gain, it is added to your assessable income and may significantly increase the tax you need to pay. As tax is not withheld for capital gains, you may want to work out how much tax you will owe and set aside sufficient funds to cover the relevant amount.
Your Home And Other Real Estate
Most real estate is subject to capital gains tax (CGT). This includes vacant land, business premises, rental properties, holiday houses and hobby farms.
Your main residence (your home) is generally exempt from CGT unless you’ve used it to earn rent or run a business, or it’s on more than two hectares of land.
It’s important to:
- keep records of your real estate, including your own home (in case in the future you start renting it out or running a home business)
- remember that when you sell real estate, the time of the event (the time at which you make a capital gain or loss) is when you enter into the contract, not when you settle.
Did You Know …
- You can NOT use capital loss to offset your regular income
- There is NO capital gain tax on your home
- There is NO capital gain tax on shares if you are a foreign tax resident
- You can …
Plan Of Action
Know Your Goals
Do NOT trap yourself into selecting the best solution as there is no such thing. Each option is a double edge sword and there are pros and cons. It is important to know your goals before
discovering solutions with us. What are your goals? Tip: pay less tax and earn more wealth are NOT goals, they are habits.
Think about your goals and what you really need.
Stick to your plan but don’t be stubbon. Do it right.