CGT discount to be axed

Posted yesterday

 

ok. you beat me to it. Happy now?

 

No other investment asset class gets that kind of tax break.

I say it's a good thing. Provide a further disincentive to lock capital away for 30 years and maybe people will look to small business investment and startups, with thier tax breaks, instead.

Much better for the economy than bloody housing.

 

If you do not sell your gain is 100% tax free.

The simplest strategies often work the best.

 

Is that correct? I was under the impression that CGT concessions and negative gearing apply to all asset classes.

I can take out a LOC at 5% secured against an IP and buy shares. If, for some reason, the dividends in a financial year are less than the interest costs for that year, I can claim the loss against my personal income at tax time (negative gearing).

If I buy those shares in my own name and hold them more than 12 months before selling, when I sell I get the same 50% discount on the capital gain that I would get if I was selling a property.

For non traders and non developers, buying property or shares in their own name and holding for more than 12 months, property and shares get the exact same tax breaks as far as I know.

 

Sorry maybe I should have been clearer - I mentioned 'asset' class....are shares an 'asset'? Maybe they are....I dunno.

Investing in small business would have a better and more direct effect on the economy and employment.

Shares / established houses - just money locked away.

 

Indeed! Traditionally, shares and property are seen as asset classes and both get the same tax treatment as investments. Although shares can be a liability. Some of mine would cost more to sell than they are worth.

 

I see holding shares as futile personally, probably why I've never paid it any mind.

Thanks for clearing that up.

 

Who cares... if you are not exposed to debt, you're fine. I hold my stuff with less than 30% LVR. Crash the market, I'll swoop in and buy more. If the market takes off, even better.

 

LOL....I'm sometimes 40:1.....

 

Every CGT asset sold, including business assets, enjoy the 50% CGT discount when held for more than 12 months.

No differentiation between shares and real estate.

 

What are you talking about all investments get capital gains discount for holding longer than 12 months??