Case study: Saving tax on the transfer assets.
The case for looking at negative markets with a new perspective.
Our client, Jenny, wanted to sell her inner city Melbourne property to buy a new investment property and boost her retirement savings but she faced a significant capital gains tax bill that could ultimately erode her wealth. With the share market lulled in February 2009 Jenny was feeling concerned. Her plan to enjoy her life through her wealth was under threat.
The strategy involved selling her quality Australian shares that were trading below purchase price into her self managed super fund, creating capital losses, and allowing her to sell her property without capital gain.
When the Australian equity market reached a low point in February 2009 we transferred Jenny’s shares into her self managed super fund, realising a capital loss to be carried forward in her accounts.
These losses allowed Jenny to sell her property without incurring capital gains tax, saving thousands of dollars in tax payments. The shares Jenny transferred to her super fund have grown in value and will ultimately provide a tax-free pension. For Jenny, a positive attitude changed the way she viewed her wealth and enhanced her quality of life.