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Timing a sell

Discussion in 'Managed Funds & Index Funds' started by Simon, 20th Feb, 2007.

  1. Simon

    Simon Well-Known Member

    Joined:
    17th Sep, 2005
    Posts:
    520
    Location:
    Newcastle
    I am looking to sell up my holdings.

    I figure I should sell close to a distribution when the price is reflecting the coming distribution. This way I get the 50% CGT exemption rather than paying income tax on the distribution. Not a big deal but maybe worth the effort?

    What do you guys think?

    When is the next distribution date?

    Thanks

    Simon
     
  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Assuming you've held the units more than 12 months, yes - it can be more tax effective to sell just before a distribution (make sure you put your sell order in a couple of days before the end of quarter - it can take some time to process ... perhaps check with NavraInvest for exact timing).

    Next distribution is calculated after the 31st of March.

    Just a reminder - if you have carried forward capital losses, or other income losses - that can have an impact on which would be the more tax-effective method (selling before or after distribution) - so it's not always cut-and-dried which is best.