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Does a SMSF pay CGT ?

Discussion in 'Accounting, Tax & Legal' started by TryHard, 10th Sep, 2005.

  1. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    863
    Hi all

    We want to convert some direct share investments in our SMSF to cash to put some money into the NI fund. We have a couple of stocks that were only purchased in the last 6 months and have done ok, and one shocker. The other 5 stocks have all been held for over 12 months and have all made high returns (dividends and growth, and where possible we have been using Dividend Reinvestment Plans).

    If we convert all of them to cash, do we get charged the full CGT on the ones held for less than 12 months ? And if so, I guess that would be offset by the capital loss on the dodgy one ?

    Thanks !
    Carl
     
  2. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
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    First sign of madness - talking to yourself

    In case anyone is interested (or has a different view) I have been led to believe elsewhere that yes indeedy a SMSF pays CGT, but there is an exemption of 1/3 of the applicable gain (as opposed to the usual 1/2) if the asset was held more than 12 months. Then the 15% tax rate applies on the remaining gain.

    Hope that helps someone :)
    Cheers
    Carl
     
  3. NickM

    NickM Co-founder Staff Member

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    20th Jun, 2005
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    Location:
    Sydney
    Spot on Try Hard ;)