Q.
I have owned an investment property for 15 years and want to
sell it. I will turn 65 next January. Is there any way that I can
minimise CGT?
A.
Capital gains tax will be calculated by adding the net gain,
after allowance for the 50% discount to your taxable income in the
year the sales contract is signed. Therefore the best way to
minimise CGT is to have as low taxable as possible in the year of
sale. If you are eligible to contribute to super, and also eligible
to claim a tax deduction for your contribution, you could take
advice about making a tax deductible super contribution to also
reduce your taxable income and also the capital gain.
Each week financial advisor Noel Whittaker answers your
questions.
