Happy new year very soon.
So I was wondering who has had experience with selling off some of their portfolio to pay down other loans.
How did it go for you?
How did you minimise tax?
Anyone have any real life sums of how it went?
I can see how it works, reducing liability, increasing cash flow after there has been growth but I can’t help but think there’s a lot lost in tax cgt and fees. Did you use something clever to reduce this? What? How?
Just looking for some more tools.
Thanks in advance.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Just do the sums.
CGT can be reduced by planning the timing of the sale and bringing forward other expenses. The proceeds of the sale be be used to save non deductible interest too.
I did a spousal transfer for a couple which increased their deductions by about $6000 per year but resulted in no CGT or stamp duty.
Thanks again Terry. I guess I have done the sums but spousal transfer is the kind of tool I need too. I’m not against paying tax, I hate people at work complaining about earning more and paying more tax, but reducing tax is clever.BuyersAgentParticipant@knightmJoin Date: 2005Post Count: 338
I have done a bit of this over the years. Not spousal transfers just open market sales to take profits. Spread each one out to its own financial year, 50% reduction is great. My wife wasn’t working at the time and was half owner so her bit as super low, Never ended up paying more than around 10-12% of total net gain when her and me were averaged out. It you make lots of money at some point you will pay some to the ato – I am ok with that.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213