Capital Gains Tax

tax training upskill videos Jul 14, 2021
 

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...

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How do I get a bigger refund?

cash refund tax Apr 22, 2021

We often are asked - how do I get a bigger refund?

The answer is simple - spend more money. But, spending money just to get a refund doesn’t work, you need to spend your money for a higher purpose than that, as the maths just doesn’t stack up.

If you are on the 32.5% tax bracket (that is you earn between $45,000 and $120,000) then for every dollar you spend on a tax deduction you get a refund back of $0.32.

So if you spend $150 on work boots, you receive a refund of $48.75, meaning that overall your boots cost a hundred bucks...and it’s not a cash back system, you have to wait for your money!

We absolutely want you to claim everything you can, it now comes to “what do I have to spend in order to get the best benefit”. You won’t buy a pair of boots every month because you don’t need them - they still cost $102 after the tax refund is received (later - when you lodge your tax return).

We would rather you keep the $150 than waste $100 on a...

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