Statutory gain is a term used to describe the profit that is made from the sale of a property that has been held for more than 12 months. The statutory gain is calculated by subtracting the purchase price of the property from the sale price of the property.
The statutory gain is subject to capital gains tax (CGT). The amount of CGT that is payable is dependent on the length of time that the property was held and the taxpayer's marginal tax rate.
Here are some examples of how statutory gain can be used in Australian English in the context of property research:
- A property investor might be liable for CGT on the statutory gain from the sale of a property.
- A property developer might be able to defer CGT on the statutory gain from the sale of a development site.
- A homeowner might be able to claim a capital gains tax discount on the statutory gain from the sale of their principal residence.
Statutory gain is an important concept to understand in the context of property research. By understanding how statutory gain works, investors can make informed decisions about their investments and to ensure that they are compliant with the law.