Great topic choice and really well explained! Definitely the issue a lot of people have, they make the gain and then realise they didn't think about the structure.
Great insight. Would you also be able to explain whats the difference between the sale allocation method - minimise gain and minimise capital gain tax? How would I calculate minimise capital gain tax?
Hey Arpita, glad you found it helpful 😀 generally the sale allocation method refers to which parcels of shares are sold first. If you you select minimise gain, typically the system will assume that the shares you sell are the ones with the highest purchase price. Obviously this will only work if you have multiple different purchase prices...
🙏 this will come in handy next year. This year was a loss year. Any recommendations on some software or sites where you can put in your records and it will work it out for you?
Hey Dirk, there are some platforms out there that track gains and losses for you but a good old fashioned excel spreadsheet normally does the trick too. It might also be worthwhile checking out sharesight...they let you track 10 holdings for free but if you need more than that they charge a fee
If a property is only under my name. Can I put in under my missis and my name and sell it after?. Will the capital tax gain be split between the two of us?.thank you
You can carry forward a loss into future financial years until you have a capital gain to offset it against. Just be careful that your wash sale is not deemed by the ATO as tax avoidance
Really enjoy this video. Can you comment more on Personal deductible contributions to super to offset capital gain tax. I think there is an age limits of this strategy in which can apply, if Over age 67, there is a work test criteria. This would not be an issue if one is still working over the age of 67, however if one is retired, this can present some issue. Can you comment if this rule will change.
Thank you for your great video. Is it possible to claim the primary residence exemption if I move into my investment property for 1 year? I am currently living overseas and renting.
In certain instances you can treat your home as a primary residence for tax purposes for up to 6 years after you have moved out. For more info check out this ATO site www.ato.gov.au/individuals/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-(home)/treating-former-home-as-main-residence/#:~:text=If%20you%20use%20your%20former,period%20covered%20by%20your%20choice. Hope that helps!
I'm interested in investing in Vanguard equity ETFs, mainly because the low fees and diversification are appealing. Is there any way to structure an investment into this to minimise CGT in the long term?
It depends on your marginal tax rate, your investment time horizon and how much you are going to invest, but a couple of options you could consider are buying them through super or an investment bond or a family trust.... each of these structures have their own pros and cons. I know that's very vague but unfortunately there are too many factors to take into consideration to provide a straightforward answer
@@GuidedInvestor That's great, thanks. I don't expect personalised financial advice for free through TH-cam, this is more than enough to start my own research. Cheers
Mate applying to the discount for CGT for cryptos I have hold long term Can it be optional? I ll explain. I need to declare certain amount of money this year (taxable income) in order to meet requirements for my PR that I will apply in 2024, but if I get all my gains in crypto with the discount of 50% I won t be able to make that number. I will need to earn at least 5000 AUD of taxable income aprox before July and that won’t happen. Can you please help me with this question? I am quite worried about it.
Depending on your residency status, you may not be eligible for the CGT discount www.ato.gov.au/Individuals/Capital-gains-tax/Foreign-residents-and-capital-gains-tax/
Guys I'm confused please help. If I have bought shares of a certain company over time say 3 years is the gain calculated on the average price of that share? Thanks in advance.
(mug investor comment) If you want to know the overall current value (unrealised gain) of a holding of shares, then your average share price times the number of shares you hold, compared to the current market share price, will give you that. But if you sell some of the shares, you need to decide which shares you are selling to determine the capital gain/loss and any CGT applicable. The simplest way is first in, first out. Say you bought 100 shares in January 2020, Jan 2021, Jan 2022, Jan 2023 and Jan 2024, you would hold 500 shares, but if you sold 75 in June 2024, then FI/FO means you sold down 75 of the 2020 vintage. You could nominate 75 from the 2024 purchase if you wanted to, but they wouldn’t be eligible for the CGT discount. Apparently you can nominate which ever shares in your portfolio you want, so long as your record keeping adjusts the cost base and capital gain determination accordingly. I think this is where Sharesight comes into its own - which is where I am at having grown weary of Yahoo finance portfolio and spreadsheets… time for some automation and smarts.
I have two run down country properties that combined are worth much less than an average house in any suburb within 100kms of major city. I'm disabled, have no superannuation, and the houses are all I have to my name. It pains me to think that when I sell a house, which I will have to do soon as I can't afford the upkeep, I will pay a hefty CGT. I hope the tax bill won't wipe out my entire future savings (which I considered my superannuation). 😢
I personally wouldn't buy a vehicle to simply save tax. A vehicle is a depreciating asset and a tax deduction is just a discount on that expense. Different story if you need a new vehicle..
Great topic choice and really well explained! Definitely the issue a lot of people have, they make the gain and then realise they didn't think about the structure.
Thanks mate, means a lot coming from an accountant 😉
Awesome video! Clear and easy to understand.
Thank you 🙏
Great insight. Would you also be able to explain whats the difference between the sale allocation method - minimise gain and minimise capital gain tax? How would I calculate minimise capital gain tax?
Hey Arpita, glad you found it helpful 😀 generally the sale allocation method refers to which parcels of shares are sold first. If you you select minimise gain, typically the system will assume that the shares you sell are the ones with the highest purchase price. Obviously this will only work if you have multiple different purchase prices...
Could you do a video on when to set up a trust, pro’s/cons?
Thanks!
Hi, are agent fees and costs for selling the property tax deductible when you sell? Thank you
Generally not as they are a capital expense. I just uploaded a short video with a few more details
Do you have a link a can watch it? Thank you
🙏 this will come in handy next year. This year was a loss year. Any recommendations on some software or sites where you can put in your records and it will work it out for you?
Hey Dirk, there are some platforms out there that track gains and losses for you but a good old fashioned excel spreadsheet normally does the trick too. It might also be worthwhile checking out sharesight...they let you track 10 holdings for free but if you need more than that they charge a fee
If a property is only under my name. Can I put in under my missis and my name and sell it after?. Will the capital tax gain be split between the two of us?.thank you
Regarding the wash sales..If I sell and buy back in before the 30 days, can I use those capital losses in the next financial year or it's gone ?
You can carry forward a loss into future financial years until you have a capital gain to offset it against. Just be careful that your wash sale is not deemed by the ATO as tax avoidance
Really enjoy this video. Can you comment more on Personal deductible contributions to super to offset capital gain tax. I think there is an age limits of this strategy in which can apply, if Over age 67, there is a work test criteria. This would not be an issue if one is still working over the age of 67, however if one is retired, this can present some issue. Can you comment if this rule will change.
Thank you for your great video. Is it possible to claim the primary residence exemption if I move into my investment property for 1 year? I am currently living overseas and renting.
In certain instances you can treat your home as a primary residence for tax purposes for up to 6 years after you have moved out. For more info check out this ATO site www.ato.gov.au/individuals/capital-gains-tax/property-and-capital-gains-tax/your-main-residence-(home)/treating-former-home-as-main-residence/#:~:text=If%20you%20use%20your%20former,period%20covered%20by%20your%20choice. Hope that helps!
I'm interested in investing in Vanguard equity ETFs, mainly because the low fees and diversification are appealing. Is there any way to structure an investment into this to minimise CGT in the long term?
It depends on your marginal tax rate, your investment time horizon and how much you are going to invest, but a couple of options you could consider are buying them through super or an investment bond or a family trust.... each of these structures have their own pros and cons. I know that's very vague but unfortunately there are too many factors to take into consideration to provide a straightforward answer
@@GuidedInvestor That's great, thanks. I don't expect personalised financial advice for free through TH-cam, this is more than enough to start my own research. Cheers
Mate applying to the discount for CGT for cryptos I have hold long term Can it be optional? I ll explain. I need to declare certain amount of money this year (taxable income) in order to meet requirements for my PR that I will apply in 2024, but if I get all my gains in crypto with the discount of 50% I won t be able to make that number. I will need to earn at least 5000 AUD of taxable income aprox before July and that won’t happen. Can you please help me with this question? I am quite worried about it.
Depending on your residency status, you may not be eligible for the CGT discount www.ato.gov.au/Individuals/Capital-gains-tax/Foreign-residents-and-capital-gains-tax/
Guys I'm confused please help. If I have bought shares of a certain company over time say 3 years is the gain calculated on the average price of that share? Thanks in advance.
You need to add up the purchase price of all the shares you've bought over the 3 years and that's your cost base. Hope that helps!
(mug investor comment) If you want to know the overall current value (unrealised gain) of a holding of shares, then your average share price times the number of shares you hold, compared to the current market share price, will give you that. But if you sell some of the shares, you need to decide which shares you are selling to determine the capital gain/loss and any CGT applicable. The simplest way is first in, first out.
Say you bought 100 shares in January 2020, Jan 2021, Jan 2022, Jan 2023 and Jan 2024, you would hold 500 shares, but if you sold 75 in June 2024, then FI/FO means you sold down 75 of the 2020 vintage. You could nominate 75 from the 2024 purchase if you wanted to, but they wouldn’t be eligible for the CGT discount. Apparently you can nominate which ever shares in your portfolio you want, so long as your record keeping adjusts the cost base and capital gain determination accordingly.
I think this is where Sharesight comes into its own - which is where I am at having grown weary of Yahoo finance portfolio and spreadsheets… time for some automation and smarts.
I have two run down country properties that combined are worth much less than an average house in any suburb within 100kms of major city. I'm disabled, have no superannuation, and the houses are all I have to my name. It pains me to think that when I sell a house, which I will have to do soon as I can't afford the upkeep, I will pay a hefty CGT. I hope the tax bill won't wipe out my entire future savings (which I considered my superannuation). 😢
What about a purchasing say a motor vehicle for a tax deduction in your business
I personally wouldn't buy a vehicle to simply save tax. A vehicle is a depreciating asset and a tax deduction is just a discount on that expense. Different story if you need a new vehicle..
Can you put this payment to the ato on a payment plan
Yeah generally you can set up a payment plan with the ATO if you owe them money
Thank you 🙏
So Smart!
Just for you mate 😉