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Hi there,
I bought a piece of land last year and want to sell it now. Is there any way to reduce CGT? does it make any difference if i invest the profit in a new property?
regrards
Responses
Do you hold it personally? Do you hold it as an enterprise? Do you hold it in trust or a company.
Have you held it for more than 12 months?
What is your current income?
All these issues will determine the rate of CGT.
Thanks need a little more clarification to assist.
AJ
If you sell the land less than 12 months after purchase you wont be entitled to the 50% general exemption. Also remember the key date is CONTRACT date, not SETTLEMENT date!!
you could possibly make super contributions to reduce your income and save some tax
You are not able to roll the gain into another investment, this concession is only available for small business.
and everything Andrew has said is also spot on: there are LOTS of possibilities, and hence LOTS of questions that need to be answered.
good luck
BC
Thank you for taking the time to answer .
The land is on my husband's name . His income is around $75 k a year .
It's not 12 months yet but we can wait for 12 months to save 50%CGT.
We have a small business . Is there any way to save CGT on that ( as you said there is some provision with small businesses)
I know I might not be providing you with full info . Please feel free to ask me if you need anything else .
Kind regards ,
Manika