All Topics / Legal & Accounting / Is is possible

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  • Profile photo of leilei
    Member
    @lei
    Join Date: 2005
    Post Count: 28

    Is it possible to avoid capital gains tax by reinvesting it into another property?Legally.

    k

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Nope. Not in Australia anyway.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of leilei
    Member
    @lei
    Join Date: 2005
    Post Count: 28

    Thanks for your reply. But its not a profit when you invest it straight away.Surely theres a loophole there!!??

    k

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Why isn’t it profit? If you buy something and then sell it for more, that is a profit.

    If there is a loophole, I’d love to find out too.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of DerekDerek
    Member
    @derek
    Join Date: 2004
    Post Count: 3,544

    Hi Lei,

    As Terry indicated rolling over CGT is not an option with property investment (see comment below).

    The capacity to rollover gains is something that exists for business owners provided they meet the necessary guidelines.

    Property investors who rent out a property and receive an income (rent) are not entitled to rollover their CG. However someone who is in the business of developing and selling without earning rent can have their properties determined as active assets and as such are entitled to rollover their gains.

    On the surface this may sound attractive – but these gains (by a developer) are treated as income and taxed at the appropriate rate anyway. In effect he/she is in a similar situation.

    Disclaimer applies – only someone with a passion for Property – no qualification held beyond year 12 economics.

    Derek
    [email protected]
    http://www.pis.theinvestorsclub.com.au
    0409 882 958

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