Can you avoid CG Tax if reinvesting sales in new property?

[DanielG]

Hi All,

I was looking at selling 2 properties and using that cash to invest in a much better quality of investment.

Question, if I make a profit of about $400,000 but re invest all that into a new property for investment purposes, do I still need to pay CG tax on that $400,000 profit?

 

[Hooray]

Your reading too many US investment books, mate.

 

[DanielG]

Is that a yes or a no?

 

[Terry_w]

No. Income is taxable whether you spend it or not.

 

[datto]

About the only way to pay nil CGT iis if you do a runner. Skasey did one lol.

 

[pickle pickle]

If the property is commercial property that you use to operate your business and you qualify for the small business tests for CGT purposes than you can rollover the sale.