Understanding stamp duty and finding a simple capital gains tax calculator will help you unpick the complexities of owning your own home or investment property.
Stamp duty is a tax placed on the sale of a property and incurred by the buyer at the time of sale. It is a tax claimed by the state or territorial government under which your property falls and it is payable at the time of sale.
The amount of stamp duty you are charged and whether there are concessions or exemptions available to you will depend on the state or territory in which you are buying. Before purchasing a property it is helpful to ensure that you understand exactly what you will be liable for and the best ways to accommodate for your stamp duty costs. Find a quick and simple stamp duty calculator online for budgeting ahead of time.
Capital gains tax calculator
Like stamp duty calculators, a simple capital gains tax calculator can also help you to understand what kind of tax you are likely to incur when you sell your investment property. Unlike stamp duty, capital gains tax is incurred by the seller when you sell your property for more than you paid for it. Essentially, you are taxed on the income or net gain you accrued for the sale of that property.
There are a lot of factors which are used to calculate capital gains tax including the selling costs, purchasing costs and ownership costs of the property. Essentially, capital gains tax will be incurred for a percentage of the net gain you made on the property, minus any money you paid toward the ownership of that property.
Deductible costs include:
- Renovations made to the property
- Fees associated with the
ownership of the property such as*:
- Legal fees (conveyancing, title searches, etc.)
- Council rates
- Land tax
- Loan interest
- Property insurance
- Emergency services levy
- Property management and selling fees – including marketing, advertising, etc.
- Depreciation of fixtures and fittings**
* Due to changes in the legislation these types of fees apply to the ownership costs only for property purchased after 20th August, 2991.
** Depreciation is only deductible on property purchased after 1997.