A WA property investor sells an investment property after holding it for more than 12 months. How is the capital gain treated for federal income tax purposes?
Correct Answer
B) Individual investors receive a 50% CGT discount, so only half the capital gain is included in assessable income
Under federal income tax law, individual investors who hold an asset for more than 12 months are entitled to a 50% CGT discount. This means only 50% of the net capital gain is included in the investor's assessable income and taxed at their marginal rate. Companies do not receive this discount.
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