Does anyone know if you make a capital gain in Australia whether you can defer the payment of capital gains tax and roll it over into another investment like can be done in the US (Refer to Robert Kyosaki book).
Hope someone knows the answer
Cheers
You can’t.
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
No. I am an accountant, but not a Tax Accountant. I still get an accountant to do my tax. But seek professional advice. Dont take my word for it.
The ATO gives small businesses (inc trusts, but not companies) CGT concessions in the form of a discount & CGT rollover portion. The asset that is claiming CGT discount & rollover portion must have been owned for more than 12 months, and certain conditions have to be met.
In terms of property investing, some people live in their investment property (ie- call it their principle place of residence) for at least 12months before selling it for a profit & claiming CGT exemption.
That’s all I know, but hope it helps.
The deferred option in the United States is a “1031 Tax Deferred Exchange” which is not available in Australia.
Further information as follows:
http://www.irs.gov/businesses/small/industries/article/0,,id=98491,00.html
— Michael
HappyBandit,
No rollover relief on investment properties in Australia. The only rollover relief is available to active assets of a business and it specifically excludes assets that have been used to produce rental income section 152-40(4)(e).
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