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CGT calculation

Discussion in 'Accounting, Tax & Legal' started by Insight, 5th Nov, 2008.

  1. Insight

    Insight Brisbane Buyers Agent

    Joined:
    24th Sep, 2006
    Posts:
    229
    Location:
    Brisbane
    I'm trying to work out how CGT would be calculated for the following scenario.

    Property was purchased in brother and sister's names pre 1985. 1/2 share transferred from sister to brother in 99 as a purchase at market value. Selling now.

    I'm guessing the 50% discount method might work well, and there would be an additional 50% reduction for the half share held from pre 85? Is this correct?
     
  2. bennymarsh

    bennymarsh Well-Known Member

    Joined:
    10th Nov, 2007
    Posts:
    58
    Location:
    Sydney, NSW
    Get advice from an accountant, but my understanding is you would treat the 2 portions separately, so 1/2 would be pre-85 as you said, and the other half will be assessable, so you may be able to apply the 50% discount if you meet the discount rules. But it will be on the '99 cost base.