I sold my investment property about six months ago and my husband and I will now be up for about $20K CGT altogether. My accountant thought that I could borrow again for a managed fund and pre-pay a years payments to bring down the CGT. Unfortunately, my line of credit (which has a nil balance at the moment) does not allow for prepayments and if I exit I’ll be up for $3000 in fees. Any creative (and legal) solutions out there? Help is needed as the financial yr draws close.
[blink]I think you can get margin loans to buy shares etc and pre pay the interest. Have a look at etrade.
Also have a look at those capital guarranteed share schemes which enable you to borrow 100% of the share value without the risk of the values going down. These have rates of around 15% so should give you a nice deduction. Comsec, ANZ and Macquarie offer them.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terryw, I’ve emailed your response to my accountant to see what she thinks. [exhappy]
banner, I’m guessing that you have sold your one and only IP?
Were you looking at buying any more in the near future? I suppose a month isn’t much, but perhaps you could buy a new one now and prepay the interest on that?
Or you could always buy a couple in the ACT, sign contracts now, and pay stamp duty before 30 June, claiming the stamp duty on your tax? It’s a beautiful thing, cos of the stamp duty in ACT I paid no tax last year, and have enough ‘loss’ to carry forward so I will pay no tax this year, even though I’ve got a fair whack of CG that I have realised!!![biggrin]
Cheers
Mel
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