Yesterday was a good day for me. I went to the tax consultant because Australians have to lodge their tax returns between the start of July and the end of August. I thought I would have to pay between $900 and $2000 on the capital gains portion of the inheritance I got from my Mum. I had kept $2000 separate in the bank to cover what I thought I would have to pay.
I told the tax consultant that I have to pay tax on around $24000. He looked at the documents I had bought with me and said "No, you only have to pay tax on about $7500. He pointed the the $12,808 amount and said "This is the the amount of capital gains but you only have to pay tax of half of that. He pointed to another figure below (which was labeled Gross Capital Gains and was $6404). He said "That is the capital gains amount that is taxable". I had been adding the 12,808 and 6,404 together thinking that they both had to be taxed.
I then asked about the $1240 amount that was listed. he told me that was interest paid on my Mum's bank account between her death and me getting the the inheritance. That was taxable.
I asked about the franking credits of $195. He said that was the tax the Trustees took out to pay the tax due on the interest on my Mum's bank account.
I told him how much interest I had made on my own bank accounts and said my sister told me I would have to pay tax on my two fixed term deposits. He told me my sister was wrong and that interest isn't taxed until it is in the bank which won't until November.
So now my gross income is back to just under $8000 (my disability pension is tax free). Australia has a tax free threshhold of $6000. Oh good, I thought to myself I only have to pay tax on around $2000. But then the consultant tells me that I am entitled to low income tax offsets.
In the end I find out I do not have to pay taxes at all and I will get the franking credits paid back to me.
So $195 back. The tax consultant cost me $114.
When I got home I celebrated by buying some ebooks for my iPad.
I told the tax consultant that I have to pay tax on around $24000. He looked at the documents I had bought with me and said "No, you only have to pay tax on about $7500. He pointed the the $12,808 amount and said "This is the the amount of capital gains but you only have to pay tax of half of that. He pointed to another figure below (which was labeled Gross Capital Gains and was $6404). He said "That is the capital gains amount that is taxable". I had been adding the 12,808 and 6,404 together thinking that they both had to be taxed.
I then asked about the $1240 amount that was listed. he told me that was interest paid on my Mum's bank account between her death and me getting the the inheritance. That was taxable.
I asked about the franking credits of $195. He said that was the tax the Trustees took out to pay the tax due on the interest on my Mum's bank account.
I told him how much interest I had made on my own bank accounts and said my sister told me I would have to pay tax on my two fixed term deposits. He told me my sister was wrong and that interest isn't taxed until it is in the bank which won't until November.
So now my gross income is back to just under $8000 (my disability pension is tax free). Australia has a tax free threshhold of $6000. Oh good, I thought to myself I only have to pay tax on around $2000. But then the consultant tells me that I am entitled to low income tax offsets.
In the end I find out I do not have to pay taxes at all and I will get the franking credits paid back to me.
So $195 back. The tax consultant cost me $114.
When I got home I celebrated by buying some ebooks for my iPad.
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