Mo Money #418 How to sell an investment property CGT free
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Oct 1, 2024 Discover the secrets to selling investment properties without incurring capital gains tax. Learn five strategic actions to minimize tax impact while aligning sales with your long-term goals. Delve into managing tax implications and superannuation strategies to maximize your returns. Explore the timing of catch-up contributions and how they can influence your financial decisions. Understand how to navigate capital gains and losses effectively for better tax outcomes and enhanced financial health.
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Property Growth and Selling Costs
- Investment properties typically double in value roughly every 10 years, especially in high-demand areas like Sydney.
- Selling properties incurs significant costs, so long-term growth is preferable to frequent buying and selling.
Plan For Capital Gains Tax
- Use the 50% CGT discount for properties held over 12 months to reduce taxable capital gains.
- If you earn 100k salary plus 250k capital gain, expect a tax bill of about 112k, so plan to reduce this tax.
Use Super Contributions For Tax
- Make tax-deductible superannuation contributions up to your limit to reduce your capital gains tax bill.
- You can check your contribution room on MyGov and make catch-up contributions if you haven't used your limits in previous years.