I am a retiree who has an SMSF and attracts a pension from the fund. I have simply offered an funding property which is able to present me with a internet sum of about $450,000 after bills. Where should I invest this sum? I have already got about $860,000 in a share portfolio and $300,000 in time period deposits.
Assuming you might be aged below 75, don’t neglect to make the utmost concessional contribution of $27,500 into tremendous to cut back the capital positive factors tax on the offered property.
Super can be helpful for its tax benefits, so you may then make a $110,000 non-concessional contribution in 2022-23 and, after July 1, a additional ‘carry ahead’ quantity of $312,500, taking the full to $450,000, all the time assuming you might be below your private switch steadiness cap.
Your pension fund is untaxed, as is your pension in your palms. You can all the time withdraw the cash in the event you later want it elsewhere.
I am in my late 40s, single, and dealing full-time with two homes in NSW. The first one, mortgage-free, is in Sydney which I purchased in 2008, and lived there for 13 years. The second one is within the Blue Mountains, which I purchased in 2021, and moved in whereas renting out the Sydney home. This second home is twin dwellings and I lease the larger a part of it out. I thought I would maintain the home in Sydney so long as I can, however now I assume possibly it’s wiser to promote it as I’m topic to land tax as a result of each of my homes produced earnings. From what I perceive, if I promote the home in Sydney inside six years I can nominate it as my principal residence and obtain full CGT exemption. However, for land tax, I want to pick the Blue Mountains home as my principal place of residence to have a partial land tax exemption. Am I nonetheless entitled to a full exemption if I promote my home in Sydney inside six years from the day I lease it out, even when Revenue NSW thought of my home within the mountains as my principal residence?
Interesting query. Capital positive factors tax, or CGT, relies on federal regulation whereas Revenue NSW implements state regulation.
Under CGT guidelines, you may declare a house as your primary residence for as much as six years after transferring out, offered you don’t declare one other house to be exempt from CGT. This is just not affected by any choices you make relating to land tax.
Under NSW land tax guidelines, in the event you lease out a part of your own home, you may nonetheless declare a land tax exemption as long as the leased a part of your property is one flat or rooms or each. If you lease a bigger a part of your own home, you may obtain the partial exemption you point out.