If we sell all properties and place all funds into a pension to be
drawn on as required, is CGT applicable?
Q.
I am closing in on retirement at 55 - my wife is seven years
younger, and we have five investment properties. I have read that
if we sell all properties and place all funds into a pension to be
drawn on as required, then no capital gains will be payable on the
sale of the properties. Is this true and what are the details?
A.
Unfortunately this is not true. If you are eligible to
contribute to super, and also eligible to claim a tax deduction for
your super contributions, you could progressively sell the
properties and mitigate CGT by making a tax deductible contribution
to super. Make sure you take advice because you can't afford to get
it wrong.
Each week financial advisor Noel Whittaker answers your
questions.
