Can anyone enlighten us?
If you make a profit when selling an IP, can you re invest this within the same tax year and therefore ‘avoid’ the capital gains tax?
I’m sure we read something about this!?
At the end of the yaer when you do your returns is when it is due from the info I have and use.
What you may have read is the rules for USA.
Byronent
Adelaide SAOriginally posted by specific:If you make a profit when selling an IP, can you re invest this within the same tax year and therefore ‘avoid’ the capital gains tax?
Short answer: NO
Long answer: There are ways to minimise the amount of CGT you pay, taking into account your other income earnings/expenses throughout that fiscal year, but ultimately (unless you have incurred significant capital loss that would negate the gain) you WILL HAVE TO PAY in that same year.[glum2]
Cheers,
Jo
What Monopoly said!
I tried to get away with paying CGT with capital gains from shares by reinvesting profits a few years back. The accountant quickly corrected my error.
Robert Bou-Hamdan
Mortgage Adviser
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© 2004 Mortgage Packaging Pty LtdThank you all!
Especially byronent for both wills and gains!
If it really was this easy we wouldn’t need this website and all the interesting questions!!
See you again…
In the US their is something called a like kind exchange or a 1031 exchange, basically you can sell your property and then upgrade to a larger property.
In Australia it dosen’t apply (at all!).
Rgds.
Lucifer_au
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