I am wanting to sell my IP in Bunbury WA but have been told that I shouldnt do it until after this Financial Year because supposidly the CGT will go down. I have not been able to find any info re this at the ATO. Has anyone hears anything about this??
Hi dannii72,
I usually leave this area to an accountant but they could be referring to the lower Marginal Tax Rates that may kick in soon. As CGT is calculated on your Marginal Tax Rate, if they are reduced then it would effectively be like a reduced CGT?
Not sure, might be on the wrong path.
Hi Dannii,
Would suggest that the comment is related to the changing tax bands which come into play from July 1 of this year. Capital gains are added to your taxable income and taxed at the appropriate rate.
As an aside have you considered hanging onto your property – there is plenty of anecdotal and researched based evidence to suggest that there is still steam left in the WA property market. You may well be better off locking in you growth and leveraging off your available equity.
Obviously this all depends upon your goals, capacity to service the loan and so on. Nonetheless you are selling an appreciating asset that will continue to grow.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Agree with Danni and Derek but signing a contract after July 1 will also give you the advantage of not having to pay capital gains tax until you lodge your 2007 ITR in April 2008. Worth considering !!
Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
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