PHOTO: CHARLOTTE CURD/STUFF Selling an investment property could mean a big tax bill.
What might a capital tax gains look like in practice? Try a $127,007 bill on for size.
The Tax Working Group, which has now finalised its final report, will recommend a capital gains tax be adopted.
How that could work is still up for debate, but the group’s plan is believed to be to tax people’s capital gains at their marginal income tax rate. If you earned more than $70,000 a year in your day job, your capital gains would be taxed at a rate of 33 per cent.
It is believed that a clear majority of members of the group support applying income tax to capital gains on investment property, shares and businesses.
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