Hi Everyone, This is my first post but here is a hypothetical scenario for you, If I was to sell one of my investment properties and instruct my solicitor to all profit from the sale into my superannuation fund, would I still have to pay capital gains Tax. I would appreciate some feedback on this,
Yes – Capital Gains would still apply.
I am not qualified to give financial advise so the below is just my thoughts!
If you have held the property for over 12 months then you would only pay Capital Gains Tax on 50% of the Profit.
Depending on the way in which you contribute to Superannuation
also makes a difference ie Self Employed person would use contribution as a Tax Deduction thereby cancelling out some or all of the Captial Gains Tax. Also depending on your Tax Rate and amount of Profit from sale of property makes a difference to amount you would contribute to Super and method of contribution ie deductible amount, undeductibel amount or perhaps even salary sacrifice for the remainder of the financial year to balance up the amount needed to contribute to best cover Capital Gains Tax.There are a few Tax items to consider before making contributions to Super – however Super is a very Tax effective vehicle to retirement – especially since the Budget.
I strongly suggest you speak to your accountant before proceeding any further who advise you on your particule situation regarding tax.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
