Rental Property CGT Calculator Australia

Selling a rental property can result in a capital gain or capital loss. The amount of the gain can depend on the property's purchase price, sale price, eligible costs, improvements, ownership period and your circumstances.

How CGT on a Rental Property Is Calculated

To work out a capital gain, start with the amount received from selling the property and compare it with the property's adjusted cost base.

Eligible costs connected with acquiring, improving, owning or selling the property can be relevant when working out the cost base.

Capital Gain = Selling Price − Adjusted Cost Base

If the capital proceeds are greater than the adjusted cost base, you generally make a capital gain. If the adjusted cost base is greater than the capital proceeds, you generally make a capital loss.

Rental Property Costs

Certain costs associated with buying, improving and selling a property may be included when working out the cost base.

The calculator includes purchase price, buying costs, selling costs and capital improvements so these property details can be considered when estimating the capital gain.

Holding the Property for 12 Months or More

The ownership period can affect the CGT calculation.

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

This can reduce the taxable portion of the capital gain.

Capital Losses on a Rental Property

Capital losses can affect the amount of a capital 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 subtract it from a capital gain, subject to the applicable rules.

Enter any prior capital losses into the calculator to include them in the estimate.

What You Need to Calculate Rental Property CGT

The calculator uses the following information:

• 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
• Total depreciation claimed
• Prior capital losses

Enter the required property and income details to estimate the potential CGT based on the information supplied.

Rental Property CGT Example

An investment property is 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 relevant requirements are satisfied, 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.