CGT question

Hi All,

I am planning on selling down managed funds to fund a property purchase (owner occupied).

My portfolio started at $100K in 2017 and is worth $230K now, I have been purchasing shares at roughly $2K per month since then ,so that would be roughly $100K by my calculations in purchased shares since that time.

I'm not really sure what my capital gains are going by these numbers, would it be about $30K?

Would I be paying tax on that amount? Would I be entitled to the 50% discount?

Should I sell more of the shares to cover any capital gains tax? Am I able to do this?

Thanks in advance

 

Each share parcel is a seperate asset. So some of the shares are under 12 months and won’t get the cgt discount.

But if you have made 30k and you qualify for the discount you will generate 15k in taxable income (assuming the recent shares have not made much so the discount is irrelevant).

a few other things but mostly noise - losses capital v revenue etc

if you make a loss in the current year on a share it will offset the 30k profit.

 

Thanks Ross. I am only selling about half of the portfolio to fund my property purchase.

Would the calculations then just be half of the 15K?

 

Sell the half that you have held longer than 12 months

 

At a top level using a back-of-the-envelope method, yes..but.. you should go through your transaction records and find the parcels which would attract the least CG. May end up with no real CG to pay, for now.

 

Thanks guys, much appreciated.

 

Take care with managed funds. Over time it may have paid distributions and any AMIT costbase adjustmnets and tax deferred amounts will affect the final CGT calc. There is no issue with choosing the most tax advantages units to sell Retain records so what remains is clear. The ATO make a big fuss of this if they ever audit you later. They will want to check BOTH CGT disposals.