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Dear Sir,
Question on Capital gain tax
sale of vacant land on 28 May 2019 290000
The land had been bought on 28 October 1984 at a cost of
$95000.Stamp duty of $2358 was paid at purchase . Rates and taxes of $15000 were paid during ownership.He paid $10000 to the agent for the sale of land and $1299 in settlement fees. these were both paid on 28 May 2019. The land had been bought by Jimmy with the intention of building a factory for his businessDo we need to include the capital gain in taxable income and do we have a disount, non-discount or an Active Asset discount for the CGT?
You do NOT include taxable gains within the Income Tax Computation. Taxable gains are computed within their own CGT computation for an individual. The rate of CGT will however be linked to the Taxable Income figure from the Income Tax Computation depending on whether the taxpayer has fully utilised their basic rate band – see the OT Notes!
There are no “discounts” in CGT, but you do have to know which gains are subjected to the various possible rates of CGT – for which Entrepreneurs Relief is a very important issue.
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