Ever tried to do some research on the ato.gov.au website about Capital Gains Tax?
It's complicated and sends you around in circles!
This video helps to explain what capital gains tax is (selling an asset such as shares or property) and how to calculate (selling price less purchase price) and how to pay tax on it.
Selling Price = Proceeds
Purchase Price = Cost Base
MAIN RESIDENCE EXEMPTION - selling your own home
The next video in the series explains more about the Main residence exemption: see that here. The main residence exemption applies to a house that has ONLY been your place of residence, when you have no other houses. Partial exemptions can apply in certain circumstances, including when you have 2 properties, or if you earn an income from it.
The main residence exemption will also apply for a period of 6 years after you move out. If you want to move from one main residence to the next, you can have a 6 month overlap where both properties can be classed as your main residence.
If you need to work out what your capital gains tax situation is, we have included a worksheet in our Tax web page - scroll to "Download CGT Worksheet" to prepare for your tax return.
As you can see - capital gains can be complicated, so please ask us for specialist advice before you rely on this information to lodge your tax return.