Hi folks,
I've decided to sell an investment property, but I'll be required to pay just under $10k in CGT if I sell now (15%). I was wondering if it's a better idea to sell next year – as I'm leaving the workforce in July and studying full-time for 12 months. If I sell during my year off work, am I exempt from CGT? It would seem too easy if it were true, but I thought I'd better ask the experts anyway!
Thank you
You won't be exempt from having a capital gain , buy yes it would likely be beneficial to sell in the next financial year. Your capital gain net of any capital losses (less 50% if owned for more than 12 months) is simply added to your income and paid at your marginal rate. So if you have next to no income in a particular year you will be much better off selling in that year as you will have a lower marginal tax rate.
Repaying the important date is the date you sign the contract and not the date you settle the property sale !!!
Richard Taylor | Australia's leading private lender
Talk about typing to quickly.
Swap that Repaying with Remember
Richard Taylor | Australia's leading private lender
great, thank u for your help!
My Accountant always advocates paying an amount into a super fund to further reduce overall taxable income. Not sure of the ins and outs as we haven't needed to do this yet but he says it is better to pay yourself super than to pay CGT. Hopefully you have a good Accountant that can advise you on this.
Cheers,
Judith
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