Capital gains tax
June 8th, 2015 by Geoff Baldwin
It is probably one of this countries most misunderstood taxes.
In September 1999 a new capital gains system was introduced. With this new system only 50% of the realised capital gain is taxable but, unlike the old system, there is no allowance for indexation. In other words, you will pay tax at your marginal rate, on half of the capital gain.
For example: If your total capital gain was $50,000 and your marginal tax rate was 35%, you would pay $8,750.
Remember, the secret is to never sell while you are earning a high income and never sell all of your property assets in the same tax year. The lower your marginal tax rate the less capital gains tax you will pay.