Understanding & Managing Capital Gains Tax on Property Sales

Capital gains tax (CGT) can significantly impact your financial return on property investments. Understanding how to manage this tax is crucial for property sellers.

1. CGT Calculation: CGT is calculated on the difference between the sale price and the purchase price, adjusted for costs like improvements and selling expenses.
2. Exemptions and Concessions: Primary residence exemption and other concessions can reduce CGT liability.
3. Timing of Sale: Timing can affect CGT liability; selling after owning the property for more than a year typically results in a 50% CGT discount for individuals.
4. Record Keeping: Maintain detailed records of purchase, improvement, and sale costs to accurately calculate CGT.

Effective CGT management involves strategic planning and understanding applicable exemptions. Consult with a tax advisor to navigate complex scenarios and optimize your tax outcome.