Should I sell less profitable shares to offset the CGT on the
profitable shares I have sold?
Q.
My annual salary is $85,000. I have sold shares bought in 2005
for a gross profit of $6,000 and another lot of shares held for
only 10 months for $1,000 profit. To offset the capital gain in
this financial year should I consider selling AMP shares I received
when they de-mutualised in 1998, given their value has decreased
since 1998? In addition they have paid five capital returns during
this time.
A.
You best decision will depend on what you see as the future of
AMP shares. If you believe as I do that they have a good future,
you may wish to keep them. Alternatively, you could sell them to
help with tax problems and then buy them back at a later stage.
Each week financial advisor Noel Whittaker answers your
questions.
