Hey guys,
Does anyone have any good links to advice on CGT and tips to (legally) minimise it?
The tax man is breathing down my neck!
HELP!
Hi Molkenr,
Please note I do not hold accoutancy qualifications so take everything I say with a bloody great big grain of salt.
As it is only Mid March you do have some time up your sleeve and the first thing I would do is to arrange an appointment with your accountant so that you can explore options that are appropriate for your short and long term situation.
As capital gains are added to your gross income then in essence what you are trying to do is reduce your income. So you may be able to focus on some negatively geared strategies to assist in the reduction of your income and thus reduce your CG liability.
Some options to consider could be – gearing into share and/or property investments, prepaying loan interest, prepaying next years expenses, or through investments in tax office approved agribusinesses.
Obviously there are other options and at the end of the day this is where you need to consider the short and long term ramifications of any actions you do take.
You may also find the ATO CGT Guide useful.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113I agree with Derek’s advice, go and see your Accountant ASAP or get one soon !! Lodging through a tax agent will defer any 2006 tax bill until at least April 2007. Also depending on your situation you may be eligible to claim contributions to a tax deductible superannuation fund. (Depends on % of salary to taxable income)
Finally don’t be afraid to pay some tax it means you’ve made a profit and isn’t that what we’re all aiming to do, just aim to minimise not avoid.Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
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