CGT optimisation... Possible?

Tax and CGT Gurus,
I am after some help regarding the sale of a property.

My wife purchased a property in 2001 for $250k and she lived in it until 2008 where she moved in with me and started renting out her place. We then purchased a house in both names in 2013 and moved in the new house.

Her unit is now being purchased by a developer and after over 2 years worth of negotiations, he has now made an offer that she will agree with. I am not sure yet how much CGT she will have to pay, but we were wondering if there are any ways to "structure" the way the property is being purchased to potentially minimise the amount of CGT she will be required to pay.

Any help or advice would be greatly appreciated, especially considering the fact that the developer wants a response in the next day or 2.

We are located near Gosford, would anyone local be available even just for a phone call to start with?

Best regards,
Sebastien.

 

Yes there are ways to structure the sale
- terms of the contracts

Plus ways that tax can be minimised by strategic use of the main residence exemptions.

 

Thank you Terry for your quick response. Would you be available over the phone to expand a little bit?

 

Yes, if you are happy to pay for the advice. I charge $660 for a consultation over the phone.

 

May I ask how long is the phone consultation? Also, do Conveyancing Terry? And if so, may I know your fees? as is we start with someone we will make sure everything is done by the same person.

Feel free to respond via Private message if you prefer.

Thank you

 

1. Structuring typically is undertaken when you buy a property and may be unavailable (without costs) now. The legal owner pays the CGT ...But spouses also affect this.
2. CGT is generally fact based and all taxpayers can choose to minimise tax but this implies overpayng tax if you dont so that makes no sense. Nuts if you dont pay the lowest tax possible. That where tax advisers who know property will help. CGT isnt always simple and you can either overpay or underpay tax and both are equally bad.

The only way you will overpay CGT on this property is likely if you get all the CGT calcs and assumptions wrong.

A few ways to minimise CGT:
* The former house issue could affect her CGT and your too
* 6 year absence rule
* Terms of sale (eg when !)

 

Good afternoon Paul,

I believe my wife Lisa tried to call you today and left a message while you were busy. When would be a good time to contact you?

Thanks again,
Sebastien

 

Propertychat is not a business tool.

 

I'm sorry Paul I don't understand your comment.