Hey Richard - To be honest - I am not sure about personal...

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Mike B

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30/03/17

21:16

Post #: 23753073
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Originally posted by HairyRichard ↑

Hey Mike. Are you sure that you pay 48% tax on your capital gains?

I was confused about this a few months back and made a comment on another thread which I'll post below. No one ever corrected me so I assumed I was right...
Or am I talking about something totally different?
Cheers

"I'm pretty young and have very very limited experience with the tax office but I think you're working out your capital gains wrong. (Maybe I'm wrong?)
As far as I know, you pay tax on 100% of what you earn on shares not held for 12 months. Say for example your tax rate is 30% (varies with your income obviously) and you sell some shares for a profit of $10k but you only held them for a week (One can dream, right?). It is my understanding that you will be taxed 30% of that $10k ($3000 tax).
BUT
If you had held those shares for 13 months and made $10k then you would pay tax on 50% of those earnings ($5000). 30% of that $5000 capital gain would be $1500.

Again, I'm a newbie dealing with tax, I'm quite young and have never had to submit any capital gains to the tax office before (just started trading this financial year) so if I'm giving the wrong information here could somebody please correct me. Thanks"

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Hey Richard - To be honest - I am not sure about personal capital gains rates.. I've never dealt with it on a personal level.

All my trading (and other stupid business ideas) are conducted within either a company or a family trust structure - So any capital gain or loss just gets added to the P & L of the business and tax is paid at the nominal company rate - and there is no discount for holding for more than 12 months..
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