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  • Capital gains tax

    We may send a letter if we receive information indicating that you sold a property and we haven’t been able to determine if it was your main residence based on the information we have available.

    As such, we haven’t been able to determine whether you need to pay capital gains tax or whether you are entitled to the main residence exemption.

    The letter will include a schedule showing the relevant information from your tax return compared with information we hold.

    Generally, your main residence is exempt from capital gains tax. The exemption cannot be claimed for property sold as vacant land.

    Understanding your capital gains schedule

    Below is a sample capital gains schedule. Keep in mind that your schedule will contain your details and may not look exactly like this one.

    Sample capital gains schedule

    Capital gains schedule
    for the year ended 30 June 2015

    Purchase and sale details provided to us

     

    Purchase details

    Sale details

    Price

    $100,000

    $500,000

    Date

    15/03/2000

    30/05/2015

    Calculation of your capital gain

    Purchase price (plus):

    $100,000

     

    Estimated purchase, sale and other costs*

    $50,000

     

    Total cost base

    $150,000

     

    Capital proceeds from disposal of property

    $500,000

     

    Gross capital gain

    $350,000

     

    Your share of capital gain

    $350,000

     

    Less any applicable capital losses

    $0

     

    Capital gain prior to discount

    $350,000

     

    Applicable discount for eligible transactions

    50%

     

    NET CAPITAL GAIN

    $175,000

     

    The following definitions will help you understand your schedule:

    • Purchase details – Information provided by the state and territory revenue and land title offices.
    • Sale details – Information provided by the state and territory revenue and land title offices.
    • Estimated purchase, sale and other costs – We have allowed 10% of the sale price as an estimate of the purchase, sale and other costs associated with the property.
    • Total base cost – The total of purchase price and estimated purchase, sale and other costs.
    • Capital proceeds from disposal of the property – The amount of money or the value of any property you receive or are entitled to receive as a result of the disposal of the property.
    • Gross capital gain – The difference between your asset's total cost base and your capital proceeds.
    • Your share of capital gain – If multiple people own this asset, then your share of the capital gain is the portion of the property that you own.
    • Capital losses – Capital losses from other capital gains tax (CGT) events that you have chosen to apply to this capital gain.
    • Capital gain prior to discount – The capital gain before any CGT discount that you may be eligible for has been taken into account.
    • Applicable discount for eligible transactions – The CGT discount rate that you may be eligible to apply on your capital gain.
    • Net capital gain – The capital gain you need to include in your assessable income.

    Next step:

    See also:

     

    Last modified: 11 Feb 2016QC 43480