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capital gains tax and tax return 2008


Example:

It's very close to 10-15% you get taxed on a longer term held shares

if you hold your investment for more than a year you get 50% CGT concession
say if you make 100K and hold it for 12 months and 1 day
you end up paytax on 50K on what ever tax bracket you on
mostly be 30% so that would be 15K

15K of 100K is 15%

There are 3  ways to do capital gains for shares for your tax return 2008 , the easiest method  for shares is the  "the other method" . Basically you take all the Buys(shares) an minus it from the sells and if you get a profit then it is  the capital gain on  which you add  at 18 g on the txx return form if i remember right

The "other method" is better explained here

Example

    Shares purchased and sold within 12 months

    In August 2007, Sonya bought 1,000 shares in Tulip Ltd for $1,500 (including broker’s fees) and sold them in June 2008 for $2,350. She paid $50 brokerage on the sale. A CGT event happens when Sonya makes the sale. As the capital proceeds of the parcel of shares is greater than their cost base, Sonya has made a capital gain.

    As Sonya bought and sold the shares within 12 months, she must use the 'other' method to calculate her capital gain as she cannot use the indexation or discount method. So her capital gain is:

      $2,350 – ($1,500 + $50) = $800.

    As Sonya has no other CGT event, and does not have any capital losses, she completes the CGT labels on her tax return for individuals (supplementary section), as follows:

    18 Capital gains

    You must also print X in the YES box at G if you received a distribution of a capital gain from a trust

    Did you have a CGT event
    during the year?

    G NOYES X

    Net capital gain

    A       800

    Total current year capital gains

    H       800

    Net capital losses carried forward to later income years

    V

TO check this method and other  calculation methods go here at the ato website

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