I am looking at rolling over different IP but will incure CGT on at least one IP. I would like to delay payment of any CGT to some future date and make use of 100% of the capital gain to generate cumulative gains over time.
Can this be done in AU (as it can be done in the UA and Germany, to name a couple)? If so, which investment vehicle is best to do this (a trust is my first option), not sure about SMSF in this matter?How delayed are we talking about? 2 month ? 5 years? 10?
Either way, CGT can not be pushed over or delayed it’s not like a stock ( rolling liabilities); you pay CGT within that year you sell…so if it was offloaded on 1st July then you got one full year….
A bit to late for trust; as it’s in your name already and to do a name transfer will occur stamp duty + the same rules applies anyway.
Regards
MichaelMick C | Shape Home Loans
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I am talking about selling underperforming IP then immediately (or at the latest, 2-3 months) to purchase new IP's.
All new properties would be placed into a trust.
The only other way around this that I can think about is to borrow 80% of the equity and use tat to reinvest…as this is not a sale, I delay the CGT and selling costs for a date yetto be determined down the track.
Hi Colin
CGT would be payable in the year of sale. If the property is underperforming then the CGT may be lowish. If this is the case you can minimise the CGT by reducing your taxable income for that year. You could do this by prepaying interest on other loans or contributing to super etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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