Hi there,
After reading RK’s book (Rich Dad, Poor Dad), he mentioned 1031 Tax-deferred Exchange when selling a property in the USA. Do we have something like that in Australia? Basically, when he sold his property, rather then paying CGT, he kept buying property with the capital gains and so forth… Is this possible in Australia or Sydney to be specific?
No unfortunately we don’t.
When a capital gain event is trigerred, we must pay CGT on the gain.
However there are some instances where CGT can be avoided or minimized such as when selling a small business, or when putting capital gains directly into super in the same financial year as the event.All the usual disclaimers apply and i’d check with your accountant about your particular circumstances.
There is a tax area which deals with small business CGT roll-over provisions….
Basically small businesses which make a captial gain can gain relief in 4 ways…see (Div 152 of the tax act)
1. 15yr exemption
2. 50% reduction
3. Retirement exemption
4. Roll-overUnfortunitly, I have not been able to think of a way to justify to the tax department that property investing is a “small buiness” (meet there clasification of a small buiness)
…thus none of what I have written has any application[
]Pete
…Beware of the dreamtakers…
I just re-read my last post….
[8D]I NEED A LIFE [8D]
Its sunday night i am rolling out tax legisation…??why??
[8D]I NEED HELP[8D]
…Beware of the dreamtakers…
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