I want to sell my shares and also minimise any CGT I'm up for.
As I plan to take early retirement in the next few months (and live off my Super income stream), am I right in thinking that I should sell my shares after I retire because (once retired), my income will be 0$ so I can then sell my shares and won't pay any CGT up to the $18,200 tax free threshold?
Am I correct on the above?
Thanks
You are right. As after retirement you have 0 income whatever your net capital gain will become your income. The longer you keep your shares the lesser will be your capital gain as it decreases year by year. If your shares to be sold are a lot and you think your capital calculation will be completed, I would suggest you get a tax agent to help you; the fees spent will be worthwhile and it is tax deductible.
I would suggest you get a tax agent to help you;
Only accurate thing in the post….
Ignore the rest :)
You would need to sell them in the financial year that you expect to have no taxable income.
Sorry - just wait til the crash and sell at a loss. No CGT
Buy High Sell Low!
my crypto trading strategy right there ;)
Keep shared for over 12 months and you pay 30or50% on profits. Can’t rmember which one it was
Well I think personally it's best to hold it into perpetuity and pass it onto your children and hope they hold it into perpetuity as well. That way you don't have to pay any CGT.
However, if you have some left over tax free threshold. You should sell down some to crystalise that CGT and effectively pay zero tax on it.
You know company's can go bankrupt right ? The longer you hold onto any share, the higher the risk of bankruptcy. Shares are not a multi generational investment, if you want something like that, buy gold.
Great logic for your mortgage too. Most companies don't go bankrupt due to time.
Maybe micro stocks/ start up companies. Not Many large companies shut up shop
Not Many large companies shut up shop
You must have a short memory.
from 2018:
Napoleon Perdis
Cosmopolitan Magazine
Diana Ferrari
Roger David
toysRus
Espirit
Max Brenner
Sumo Salad
Laura Ashley
2017:
Oroton
Network Ten
way back:
BondCorp
onetel
Qintex
The list goes on & on & on
@brad1-8tsi: I wouldn't call half of those large. And out of over 2000 companies listed in the ASX, that number isn't that big.
@Danstar: They certainly weren't large when they went into administration.:-)
Seriously, to say "not many large companies shut up shop" is so wrong in a broader sense. The potential to lose significant amounts of capital on the share market without careful selection of stocks is quite high.
If you'd bought Flight Centre for $65 in jul 2018 you'd be fairly annoyed with the current sub $45 price.
Or Platinum Asset mgmt for $8+ in Feb 2018 and it's been down hill ever since (<$4.50 now).
IOOF, AMP, etc None small companies
@Danstar: i would say "choose your stocks and your buy price carefully and you'll make good money but be aware when they are going irreversibly backwards and get out quick."
Have you been investing in the share market very long and would you consider yourself successful in your investments?
@brad1-8tsi: I've been very successful, mainly dealing with micro stocks.
I regret not investing in some of some major companies that have steadily increased over the years, but I found I was spending too much time concentrating on the share market, over my actual full time job. So I've halted my trading for the time being.
Ps. Successful in contrast to my budget that is.
From a purely tax minimisation perspective (i.e. with no regard to the investment outlook or any other perspective), you should (1) only sell your shares as you need the money as there is no point in selling shares, crystallising a gain/tax bill only to not need the cash in that year, and (2) sell the shares in years when income from other sources is as low as possible.
You will want to give consideration any superannuation and pension payments in this mix.
As ever, it is always best to speak to your accountant before taking any action.
Thanks for your replies - I will find a financial advisor and discuss selling them with him/her.
I've owned most of my shares for 15 to 20 years and now want to rethink my investment strategy; maybe have more cash available as I'm concerned about a major correction in the share market in the next 6 to 12 months.
On the other hand, I could be wrong and miss out on another 25% gain on the share market - who knows! :>).
mind to share your portfolio ?
If you have Woolworths shares from 15 years ago. If the price drops 30% you still get the dividend which probably won't go down as people don't eat 30% less.
There is research that with corrections like the 20% drop last year dividends didn't drop 20%. If you don't need to don't sell it.
If all you want is money, try using your shares as collateral for a loan.
OP’s retiring… what would he use a loan for? Takeover bid for Ozbargain?
You are correct. If you retire next financial year and sell your shares, the capital gain up to $18200 is tax free. From $18101 to $37000 ,tax is 19%.
As you have held the shares for longer than 12 months ,50% of your capital gain is excluded from the calculations
Do you have any carry over capital losses or any dogs that you wish to unload?
https://www.ato.gov.au/General/Capital-gains-tax/