Property CGT Calculator Australia

Selling an investment property can result in a capital gain or capital loss. The amount considered for CGT can depend on the property's purchase price, sale price, eligible costs, ownership period and your circumstances.

How Property CGT Is Worked Out

The capital gain is generally based on the difference between the capital proceeds from selling the property and its relevant cost base.

The cost base can include eligible costs connected with acquiring, improving, owning or selling the property.

Capital Gain = Sale Price − Purchase Price − Allowable Expenses

If the result is positive, you generally have a capital gain. If the adjusted cost base is greater than the capital proceeds, you generally have a capital loss.

Property Costs and the Cost Base

When calculating the gain on an investment property, certain costs associated with buying, improving and selling the property may be included in the cost base.

These can include eligible acquisition costs, improvement expenses and costs directly related to selling the property. Including eligible expenses in the cost base can reduce the resulting capital gain.

Property Held for 12 Months or More

The length of time the property has been owned can affect the CGT calculation.

If an eligible property is held for more than 12 months, a 50% CGT discount may be available to individuals and trusts where the relevant requirements are satisfied.

The discount reduces the taxable portion of the eligible capital gain.

Prior Capital Losses

Capital losses can also affect the amount of a property gain that is ultimately taken into account.

If you have a capital loss from another asset or a previous year, you may be able to use it against a capital gain, subject to the applicable rules.

For example, a capital loss from shares may be used to offset a capital gain from an investment property.

Investment Property and CGT

CGT treatment can apply to real estate and the sale of house property. Where a property is used as a residence, an exemption may be available if the relevant requirements are met.

The CGT treatment therefore depends on the property's use and the circumstances surrounding its sale.

What You Need to Calculate Property CGT

To estimate the potential CGT on an investment property, you can use the following details:

• Annual taxable income before tax
• Relevant income year
• Property purchase price
• Property sale price
• Buying costs
• Selling costs
• Capital improvements
• Whether the property was held for 12 months or more
• Prior capital losses

Enter these details into the calculator to estimate the potential capital gains tax based on the information supplied.

Property CGT Example

Consider an investment property purchased for $420,000 and later sold for $520,000. If the total cost base is $450,000, the capital gain would be:

$520,000 − $450,000 = $70,000

If the property was held for more than 12 months and the owner meets the relevant requirements, the 50% CGT discount may apply:

$70,000 × 50% = $35,000

The resulting net capital gain would be $35,000.

The final tax payable can depend on taxable income, the applicable tax rate and other circumstances.