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Reducing capital gains tax

Discussion in 'Accounting, Tax & Legal' started by Noel Peters, 13th Jan, 2014.

  1. Noel Peters

    Noel Peters New Member

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    13th Jan, 2014
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    Brisbane
    As there doesn't appear to be any thread on tax I will put this question here. Can a capital loss in shares be used to offset a capital gain in property. Assuming it can be it would then be theoretically possible to reduce your tax using dividend stripping to create an "artificial" capital loss. I'd be interested in the views of other investors on this.
     
    Last edited by a moderator: 13th Jan, 2014
  2. Terryw

    Terryw Well-Known Member

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    Yes a capital loss on shares could be used to offset a capital gain on property.

    Dividend stripping involves buying shares, getting the dividend and then selling them doesn't it? Watch out for the 45 day rule.
     
  3. Blueeye

    Blueeye Active Member

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    Sorry Terry, I'm a bit of a novice when it comes to the stock market. What is the 45 day rule?
     
  4. Terryw

    Terryw Well-Known Member

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    To claim franking credits you may be required to hold the shares for a min of 45 days.