When is CGT payable?

If I was to sell a property on July 1 would I be correct in saying I wouldn't have to actually pay the CGT until the completion of the financial year, so essentially 12 months later? (Even later by the time I actually lodged my tax return)

Meaning I could have that extra money sitting in an offset?

 

Tell me what you mean by selling a property. Eg you sign a contract in june, settle in july. When did you sell for rax purposes?

 

longer

Tax Tip 32: Delay paying CGT and save interest https://propertychat.com.au/community/threads/tax-tip-32-delay-paying-cgt-and-save-interest.3400/

 

Look into tax concessions with the sale - small business concessions, main residence and strategies to increase your cost base.

Timing strategies are lovely but the net present value of the benefit is not much. They are good - but make a real effort to trawl over the permanent advantages before hitting the timing advantages.

 

Agreed when was the contract date. Ive heard many people say i sold a property in july because they settled in july. Turns out they sold in june

 

Great responses as always @Terry_w @Ross Forrester @MikeLivingTheDream

Haven't sold the property as yet, will be careful with contract date as it appears that's the important date.

Planning to sell in the financial year I start working for myself as I know my income will be the lowest it will be for a long time, especially with purchases of ute, excavator, trailer etc. will probably travel a bit too (it's well over due) so taxable income exl CGT will be very minimal.

 

good strategy. sell in a year with lower income with lower marginal tax rates. consider deductible contributions to super (where cashflow permits) to potentially lower it even further.

hopefully we will also hear soon from Parliament that the $20k accelerated depreciation "write-off" for small business has been extended for the 2019 financial year and that will also help with those asset purchases for your new business.

 

Yes great idea. I sold one with instructions to not sign until after July1. It was my last year of working. I salary sacrificed to the max July- Dec then retired but took 6months leave without pay before getting my LSL in the next financial year. So in the financial year that i sold i had very little income. Saved me a lot of tax.

 

And now its even more complex with concessions like deductible super, downsizer super contributions and more being added to the mix.