Input Variables and Their Meanings

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1. Entity Type

• What it is: Whether an individual, trust, or company own the property.

• Why it matters: Capital Gains Tax (CGT) rules differ by entity type (e.g., tax rate, exclusions, inclusion rate).

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2. Original Purchase Price

• What it is: The price paid when the property was originally bought.

• Why it matters: Forms part of the base cost used to calculate the gain.

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3. Selling Price

• What it is: The price at which the property is sold.

• Why it matters: Used to calculate the gross capital gain.

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4. Agent Commission

• What it is: The amount paid to an estate agent for selling the property.

• Why it matters: This cost reduces the net capital gain.

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5. Renovation/Improvement Costs

• What it is: Costs for permanent improvements made to the property (not routine maintenance).

• Why it matters: These are added to the base cost and reduce the gain.

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6. Legal/Transfer Costs

• What it is: Fees related to the property transaction, such as attorney fees, deeds office costs, and transfer duties.

• Why it matters: Included in the base cost to reduce the capital gain.

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7. Ownership Period (Years)

• What it is: The number of years the property has been owned.

• Why it matters: Currently for reference, but can be expanded to adjust for inflation or primary residence rules if needed in future versions.

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8. Marginal Tax Rate (for Individuals only)

• What it is: Your income tax rate (e.g., 18% to 45%).

• Why it matters: The CGT for individuals depends on this rate after applying the 40% inclusion.

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