When is the best time tax-wise to sell a share portfolio?
Q.
This will be my wife's last tax year. She has a small share
portfolio that she would like to sell. When is the best time tax
wise for her to sell - this year, or next year when she has no
income? She is not eligible for a pension.
A.
Capital gains tax is calculated by adding the net gain to
taxable income in the year of sale. Therefore she should be trying
to choose a year when her income is low. Of course if she is
eligible to contribute to super, it may be possible to reduce the
CGT by making a deductible contribution.
Each week financial advisor Noel Whittaker answers your
questions.
