Pay in capital gains tax

I bought a rental property in June 1998 for $147,500 and sold it last weekend for $330,000 - a capital gain of $182,500. Due to my salary I am in the top tax bracket. How much do I have to pay in capital gains tax?

The answer, based on the information provided, is $42,431.25

The capital gains on this property is calculated as follows:
Gross gain    $182,500
Apply 50% discount   $ 91,250
Net capital gain   $ 91,250
This net capital gain will be sitting on top of your salary and any other income you have earned.
Therefore, $91,250 @ 46.5 % = $42,431.25

This would be reduced if your property was held jointly.

Also, did you include in your calculation any costs related to the purchase of the property? For example: stamp duty, legal fees or improvements to the property? You can include costs involved with the sale of the property, including legal fees, advertising and agent commission. All these costs will further reduce the capital gain.

Click here to visit Peter Switzer's website