All Topics / Help Needed! / Help with GGT???

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of BurlboyBurlboy
    Join Date: 2005
    Post Count: 22

    I bought an IP with my Brother and Dad 4 years ago, and we are considering selling. Problem is…we bought the 5 acre block for $200,000, and its now worth $700,000! Is there ANY way we can reduce the CGT? Im thinking trusts, super, another IP, swapping property, a business…ANYTHING???
    Obviously we will have to pay tax somewhere along the line….but we just dont see the point of giving the good ol Tax man tooo much money!
    Any thoughts would be appreciated…cheers!!! [specool]


    Profile photo of crushercrusher
    Join Date: 2002
    Post Count: 186

    The first question is “why do you want to sell?” If you want to invest in managed funds or another investment property you could probably access some funds by using the equity that is in your existing IP, without selling and triggering a capital gains event.

    If you desperately need the cash in hand you will probably struggle with finding a legal way to avoid capital gains tax however, there are a few ways to minimise or offset it. You’re best off talking to a good accountant who will assess your personal situation in more detail.

    Todd Burns

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,190

    That is a good situation to be in, but it is too late to set up a trust now. Better seek proper paid advice, maybe from a few accountants.

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    Profile photo of PurpleKissPurpleKiss
    Join Date: 2003
    Post Count: 580

    Is the CGT going to be as bad as you think! Before trying to avoid it which is unlikely, look at what it would be. My rough calcution (worst case scenario) would be around $35,000 each but that’s based on the very little info given and it would depend how it was purchased ie: names on the title (joint tenants or tenant in commona nd percnetage etc), what costs need to be deducted etc etc. That would still mean a profit of about $130,000 EACH, not bad for 4 years.

    If you need the funds then pay the tax and take the funds, your still well in front.


    Profile photo of DraconisVDraconisV
    Join Date: 2006
    Post Count: 319

    Have you thought about using all that equity to fund the purchase of one of more IPs.
    This could be the beginning, you can start off quick with a few as you have lots of equity to use as deposits.
    This is the path you should take to reach financial freedom.


Viewing 5 posts - 1 through 5 (of 5 total)

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