Capital Gains Tax Calculator: Property Sales
Capital Gains Tax (CGT) is owed when you sell an asset for more than you paid. For property, CGT applies to investment properties and second homes. Your main residence (primary place of dwelling) is generally CGT-exempt. This calculator estimates the CGT liability for a property sale based on purchase price, sale price, and associated costs.
FAQ
Q1: How is capital gain calculated?
Capital gain = Sale price - Cost base. The cost base includes: purchase price, purchase costs (stamp duty, legal fees), and capital improvements (renovations that add value). You can also include holding costs if the property was purchased after 20 August 1991 (interest, rates, repairs) if claimed as deductions—these reduce cost base.
Q2: What is the 50% CGT discount?
If you hold the property for more than 12 months before selling, you get a 50% discount on the capital gain. That means only half of the gain is added to your taxable income. This applies to individuals, trusts, and complying super funds. Companies don't get the discount.
Q3: Is my primary residence exempt from CGT?
Yes, generally your main residence is fully exempt from CGT, provided you've lived in it for the entire ownership period (with some exceptions like income-producing use, Aus]. absence rules, or moving to a new residence during ownership). This calculator is designed for investment properties. Claims for primary residence should use specific rules.
Important: CGT is complex. This calculator provides estimates only. Actual CGT calculations depend on your marginal tax rate, other capital gains/losses carried forward, and specific circumstances. Consult a tax professional or the ATO for official advice.