Capital Gains Tax Calculator

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Quick Guide to Capital Gains Tax (CGT)

What is Capital Gains Tax?

Capital gains tax (CGT) is a tax on the profit realized from the sale of a non-inventory asset. The most common capital gains are realized from the sale of stocks, bonds, precious metals, real estate, and property.

Do Companies and SMSFs Pay Capital Gains Tax?

Yes, both companies and Self-Managed Super Funds (SMSFs) are subject to capital gains tax. However, the rate and method of calculation can vary. For companies, capital gains are typically added to the company's assessable income and taxed at the company tax rate. For SMSFs, the tax rate can depend on whether the fund is in the accumulation or pension phase.

What are the Exemptions?

There are several exemptions and concessions available that can reduce capital gains tax. These include the main residence exemption, the 50% discount for assets held for more than 12 months, small business concessions, and others. It's important to consult with a tax professional to understand which exemptions apply to your situation.

How to Calculate Capital Gains Tax Manually?

To calculate capital gains tax manually, follow these steps:

1. Calculate the capital gain or loss: Subtract the cost base (what you paid for the asset, including purchase costs, improvements and legal costs) from the proceeds of the sale.

2. Apply any applicable discounts or concessions: For example, if you've held the asset for more than 12 months, you may be eligible for the 50% discount.

3. Add to assessable income: Add the net capital gain to your assessable income for the year.

4. Calculate the tax: Apply your marginal tax rate to your total assessable income.

Understanding capital gains tax and how to calculate it is crucial for any investor. Our capital gains tax calculator can simplify these calculations and provide a quick and accurate estimate of your potential tax liability.

Remember that this article provides general information. For specific advice related to your circumstances, consider consulting with a tax professional or financial advisor.