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SMSF over the cap decisions

Discussion in 'Superannuation, SMSF & Personal Insurance' started by ethereal, 4th Jun, 2018.

  1. ethereal

    ethereal Member

    Joined:
    20th Jun, 2012
    Posts:
    8
    Location:
    Adelaide, SA
    I have early signs of dementia and nowadays I am bewildered with the rules to the extent that I become stressed and unable to make the necessary decisions so I am here for guidance. I have googled for examples of my situation and what to do, but found no clarity. Face to face with advisers I do not seem to be able to avoid pretending I understand either. I used to be able to understand all this once but not now. You may question how I decide what shares to buy and sell. I am ok there as I subscribe to a service that has been very good for 5 years now and I follow their advice 75%.

    Our return for 2016/17 has to be submitted soon. I'm 75, in pension mode and about 100K over the cap. There's $28K in cash and the rest in shares in 17 companies with amounts ranging from half under $100K and the rest $150K to $780K. Some shares held date back 10 years. I get $125K franked dividends and $54K franking credits and expect a refund of $27K.

    In general principle, for the 2016/17 return, how do I choose which shares to sell and what do I do about the new CGT relief "trick" / "re-setting" cost bases?

    Moving on, I look like being $1.8K over the cap at 30/6/2018 and think I have to apply for CGT relief again before then and I have seen mention of parcels of shares bought and sold for a given company?
     
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  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    780
    Location:
    QLD
    you don't need dementia to get confused over the latest financial twists and turns ( nearly everyone gets confused )

    this is right outside any skills i have so please take these as suggestions only

    how to reduce your shares ??

    method one select the ones in capital loss ( like perhaps TLS ) and sell down those

    method two select the ones that appear to be at a cyclic peak ( way over-priced ) and take some cash off the table there ( but perhaps risking extra CGT )

    method three , park SOME cash in an asset like physical silver , or a piece of art or some collectible ( something you might sell later in tougher times )

    take care

    cheers
     
    ethereal likes this.
  3. ethereal

    ethereal Member

    Joined:
    20th Jun, 2012
    Posts:
    8
    Location:
    Adelaide, SA
    Thanks a lot twisted. Those methods confirm the thoughts I had spinning in my head about what to sell so I can move forward one step from there. Up until the introduction of the cap idea everything was so straight forward.
     
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