Hi, my apologies if this is not in the correct area or has been asked before (I did try the search engine!)
My wife and I have very recently sold some shares on the ASX that we held for a number of years and made a very substantial profit - in fact enough to now pay off our mortgage.
Now that we have the money in our hand everyone has an opinion on what we should do. We are currently a single income family (wife on maternity leave) with four young children. Household income is between $60K-$80K per annum.
Originally our goal with these shares was just to sit it out and wait to have enough to pay off the house. We've spoken to two accountants about what is best for us with a family noting that the share profit will wipe out our family tax benefits (family allowance thing) for this financial year. We've been presented with two scenarios:
Accountant One said we should not pay off our house and put the bulk of the money into superannuation to avoid paying tax on the profit. By doing so, he also claims our family tax benefits won't be affected as the profit we made won't be counted as income.
Accountant Two has said you can't do this with profit from shares (or income from rental properties) and we will still be taxed on it and we are better off paying off the house.
I can see the merit in Accountant One's methods, but part of me wonders whether locking money away in super (that is still 30+ years away) for the sake of saving a tax payment and losing a year's family tax benefit is not worth the losing the "I just paid off my house" mindset. Does that make sense?
I am seeking opinions of anyone with knowledge or experience in this area. Which accountant is on the right track here? What (in your humble opinion) would you do?