Capital Gains tax in a nutshell - and why it's not all bad news
The number one reason I hear for not investing in property is “I don’t want to pay capital gains tax”, so I want to explain a little more about how capital gains tax works in Australia right now.
I want you to understand that the more tax you pay, the more you’ve kept, ok? Keep this in mind.
So very simply, lets have a rough example – and by no means is this conclusive or tax or personal advice
If you buy an investment property and some years later you sell it and make a profit – lets say you make $200,000 AFTER all of the costs (legal fees, agents fees etc) just to use round numbers, which was easily done in the last couple of years in Sydney.
So, you made $200,000
And if you’ve held the place for more than 12 months then current