minimising capital gains tax

[steve]

Hi all,
We have a property we are concidering putting up for sale sometime this year and are looking at ways to reduce our capital gains tax,anyones little tricks or thoughts would be appreciated.Also, if we were to sell to take it over into next year,for tax purposes,does it go from the time a deposit is taken or full payment and contract exchange.

Once again thankyou for your replies,steve

 

[geoffw]

Steve,

If the property was your principal place of residence, then no tax is payable.

If not, if you hold it for more than 12 months before selling, you are only taxed on 50% of the capital gain.

When you sell, you can deduct payments not deductible when you bought- stamp duty, travel to property. legals etc. (though ACT is a bit different- I don't know here you are).

 

[kierank]

Sell or after 1 Jul 04 and CGT doesn't come due until 30 Jun 05. Arrange with your accountant to submit your 04/05 tax return around Apr 06 (nearly 2 years after you have sold).

You wouldn't want the market to crash though as your Capital Gain might become a Capital Loss - one way to reduce your CGT