Tax Strategy 1: Minimise Capital Gains Tax – sign sale contracts in July

Did you know that a taxable capital gain is determined at the time a contract is entered into rather than settlement date? If you’re considering selling shares or property you may want to delay signing the contract until 1 July 2017.

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Realising a capital gain after 30 June 2017 will defer tax on the gain by 12 months. This can also be an effective strategy to access the 50% general discount available to individuals on assets held for at least 12 months.

Consider realising capital losses if you’ve already realised capital gains on other assets for year ending 30 June 2017. This will reduce the amount of capital gain to be taxed. You should also consider the availability of other small business CGT concessions that can reduce or defer a capital gain arising from an asset sale.

Sasi’s Tip: Meet with your Proactive accountant before 31 May 2017 and go through your investment portfolio.

Understand how much capital gain/loss you’re expecting to make and how much tax is payable. Consider reviewing your investment strategy and make fully-informed selling decisions based on consideration of all opportunities in order to minimise your capital gains tax.

The information provided above is general in nature and does not constitute financial advice. Find out more on this topic and get financial strategy advice that’s right for you.

Call (03) 9021 6662 and book your strategy session today.

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