Minimising CGT?????

John, it is a bit late for this now if the contracts where signed last year.. There are a number of things that could have been done, but are probably too late now.

I suggest you just make sure that every expense that hasn’t otherwise been claimed is added up – incuding travel, light bulbs, lawn mower fuel etc etc and this can be used to reduce the CGT.

Income cannot be distributed to others so your wife has to wear the tax.

Hi JL,
You probably need an Accountant to confirm this, but your purchase date MIGHT help you :-

Bought in 1999 for $212k

I recall that a major change occurred (in Sep 2000?) re Indexing of values for CGT purposes. As I recall, for homes bought prior to that date, the owner may CHOOSE whether to use the Indexing method or the new “50% discount” method. As I wasn’t selling back then, I didn’t take too much more notice, but do check the possibility. It might be that the Indexing method might have now been phased right out.

The Indexing went something like this :-
Values bought for were Indexed according to inflation, etc (e.g. if bought in 1995 for $100k, in 1996 Indexing might take its base value to $102.3k, then in 1997 it might rise again to $106.8k, etc….) Also, when calculating CGT that way, Capital Gains were totalled based on that Indexed cost base, and THEN the gain was divided by 5, and that 20% amount was added to your Income for the year of sale. There was NO 50% discount when doing it this way, but the Indexing and the “20% added” meant that the CGT levied would nt be overly onerous.

Do note, the above words of mine are based on “recollection” – thus, they may well be flawed. Maybe others can recall better, and/or can affirm whether Indexing is still possible, or not.

Benny