I’m not a tax adviser, but I’ve watched investors make costly mistakes that were entirely avoidable. [cite: 395, 396] Here are the legitimate strategies worth understanding.
The Main Strategies
- Hold for more than 12 months — Access the 50% CGT discount. [cite: 399] Selling before 12 months costs you this discount entirely. [cite: 400]
- Maximise your cost base — Keep records of every capital expenditure including improvements and selling costs. [cite: 401, 402]
- Time your sale to a low-income year — Selling when your salary is lower means the gain is taxed at a lower marginal rate. [cite: 403]
- Offset gains with losses — Losses on other assets can be offset against your gain. [cite: 405]
- Main residence exemption — Principal residences may be exempt, and the six-year rule can apply if you rented it out. [cite: 406, 407]
Talk to KR Peters. We work with experienced property tax accountants and can connect you with the right people. [cite: 412, 413]
References: 1. Real Estate Calc. [cite: 415] 2. Mortgage and Finance Advisory. [cite: 416] 3. Australian Taxation Office. [cite: 417]