Capital Gains Tax and Profit Taking - Aussie Stock Forums

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  1. #1

    Default Capital Gains Tax and Profit Taking

    I want to take a profit on some of my shares and transfer the capital gains to another share. If I do sell the shares will I be required to pay capital gains tax in the 2009/2010 financial year because it is after 30/06/09?

    What would the normal process for a trader be?

    Option 1.
    Would you sell the shares and transfer your starting capital + wins to the new share to maximize your exposure to the market, and then sell a certain number of shares come tax time to cover the capital gains tax?


    Option 2.
    Would you sell your shares and only reinvest your starting capital + wins - capital gains tax? So you basically put aside the amount of capital gains tax you would have to pay and not reinvest it.

    What do you do? I'm leaning towards option 1 because you can make more money .

    Also can I just sell a share and buy another share on the same trading day with the capital gains I have made and it will all be sorted in three days (T+3)?

    Thank you!

  2. #2

    Default Re: Capital Gains Tax and Profit Taking

    If you sell on or after 1/07/09, then you will declare any gains or losses in the 2009-2010 tax year.

    The CG tax will be added to your tax return, so in essence, you only have to pay once your return is done. If there is a short fall (ie, you have not paid enough personal income tax to cover the CGT), the ATO will send you advice and you will need to make a payment. It's no big deal, you can do it via BPAY.

  3. #3

    Default Re: Capital Gains Tax and Profit Taking

    OK, thanks for your help mate.

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