Minimising capital gains tax

Viewing 8 posts - 1 through 8 (of 8 total)

Mark Griffiths
Member
@mark-griffiths
Join Date: 2005
Post Count: 3
June 23, 2005 - 9:05 pm
Can anyone explain in simple terms the best way to minimse capital gains tax on buying and selling a renovated house within a short time period.
MG
westinvest
Member
@westinvest
Join Date: 2005
Post Count: 88
June 23, 2005 - 10:43 pm
Simple Terms: the best way to minimes CGT is to live in the house for a short time ,12mths
Regards
http://www.owner.com.au
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
June 23, 2005 - 11:52 pm
West – there is no timeframe stipulated.
Mark – West means to make it your home. This may not work if you already own a home.
If you keep the property for 12 months or more you will have a 50% reduction in any CGT due on sale. Remember to retain all reciepts as these come straight off the profit!
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Nigel Kibel
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Join Date: 2005
Post Count: 1,425
June 24, 2005 - 12:19 am
Also mark
Do not buy in a company name, otherwise you will pay capital gains on 100%. Only buy in a company if you intend to sell within 12 months
Nigel Kibel
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JKM
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@jkm
Join Date: 2005
Post Count: 82
June 24, 2005 - 12:34 am
Company tax rate is always 30% so this may be an option however if you are in the top tax bracket. Just need to do a comparison first.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
June 24, 2005 - 2:07 am
Rather than a company, look at discretionary trusts instead.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Ajax
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@ajax
Join Date: 2004
Post Count: 60
June 24, 2005 - 4:20 am
What about not selling…and drawing funds out (80% of property value) by way of lo doc loan.
Ajax
Mortgage Hunter
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Join Date: 2003
Post Count: 3,781
June 24, 2005 - 5:00 am
Originally posted by Ajax:
What about not selling…and drawing funds out (80% of property value) by way of lo doc loan.
Ajax
LODOC is not the only option.
Clients of mine have their properties revalued whenever the market is strong and have their LOC topped up to 80%. They may not use it but it is a way to lock in value at the peak of the market.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.