REAL ESTATE DISPOSAL CAPITAL
GAIN CALCULATION
|
CAPITAL PROCEEDS |
|
207,500 |
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|
ADJUSTABLE VALUE OF DEPRECIABLE ASSETS AT TIME OF DISPOSAL |
|
( ) |
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= NET CAPITAL PROCEEDS (A) |
|
207,500 |
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PURCHASE PRICE |
|
130,000 |
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ADJUSTABLE VALUE OF DEPRECIABLE ASSETS AT TIME OF ACQUISITION |
|
( ) |
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|
= NET PURCHASE PRICE |
|
130,000 |
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+
COSTS OF ACQUISITION |
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|
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|
|
4750 |
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+
COSTS OF DISPOSAL |
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|
8900 |
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+
IMPROVEMENTS AND UNCLAIMED REPAIRS |
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|
Fence |
|
2500 |
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|
|
|
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+
DEPRECIABLE ASSETS ADDED only if
property was not income-producing (e.g. a holiday home) |
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|
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If
property was acquired after PLUS
UNCLAIMED RECURRENT EXPENSES For example: mortgage interest, rates, insurance. Recurrent
expenses cannot be indexed. |
Recurrent
expenses are
omitted from the
REDUCED
COST BASE |
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If
property was acquired before MINUS CAPITAL WORKS COSTS INCURRED and qualifying for dedn. to calculate reduced cost base (for capital loss calculation). MINUS CAPITAL WORKS COSTS INCURRED after If property was acquired after MINUS CAPITAL WORKS DEDUCTION INCURRED and qualifying for deduction to calculate both reduced cost base, and the cost base for capital gains calculation. |
Capital works deductions incurred are always omitted from the
NOTE: the capital works costs
are subtracted even if they have not actually been claimed as a deduction
against income. |
( ) |
||
|
= COST BASE (B) |
REDUCED
COST BASE cannot
be indexed. |
146,150 |
||
|
CAPITAL GAIN: A – B = |
61,350 |
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PROPERTY INCOME-PRODUCING |
PROPERTY NOT INCOME-PRODUCING |
|
Subtract adjustable values
of depreciable assets from acquisition cost and from capital proceeds. |
In this case depreciation
expenses will not be a relevant consideration. The cost of any new
depreciable assets is simply added to the cost base. |
The assessable capital gain
is 61,350 x 50% = 30,675.