Capital gains are profits that a fund, or an individual, makes on the sale of an asset. According to the Tax Office, “Generally, your capital gain is the difference between your asset’s cost base (what you paid for it) and your capital proceeds (what you received for it). You can also make a capital gain if a managed fund or other unit trust distributes a capital gain to you.”
Capital gains tax (CGT) is a tax on the profits that a fund, or an individual, makes on the sale of an asset. According to the Tax Office, “Capital gains tax (CGT) refers to the income tax you pay on any net capital gain you make and include on your annual income tax return. For example, when you sell (or otherwise dispose of) an asset as part of a CGT event, you are subject to CGT.”
The following articles refer to Capital gains tax (CGT) and superannuation.
Q: My question is about taxation within super when a member dies. We are two members in the one SMSF, both drawing pensions. We have nominated each other as reversionary beneficiaries and benefits are to be paid to our legal estate in case the nominated reversionary beneficiary dies before the pension member.
Q: If I purchased a rental property in my SMSF for say $200,000 five years ago and the house is now valued at $300,000 in the SMSF what will be the capital base for the calculation of future capital gains tax (CGT) if I transfer the house out of the fund?
Q: If my self-managed super fund (SMSF) owns an investment property, and the SMSF later sells the property, what is the amount of capital gain tax payable by the SMSF?
Q: I have a self-managed super fund (SMSF) and I also have two investment properties in my personal name. When I sell the properties, I will be required to pay capital gains tax.
If it were not for tax, superannuation wouldn’t exist.
Q: With a SMSF with two members both having accumulation and pensions, when you draw down pension amounts the drawdown amount reduces the pension balance in accordance with the concessional/non concessional percentages and any super contributions go into the accumulation account.
Making super contributions (and the rules applicable to the different types of contributions) is one of the more popular topics featured in our Q and As. Listed below are 20 popular Q and As about the contributions rules, updated for the 2010/2011 year.
Q: I have a question relating to a strategy in reducing capital gains tax (CGT). My husband and I, both near 50, plan to spend around $700,000 of our cash to buy shares soon. We don’t have a trust structure or company (both PAYG) and wondered how/if we could buy them in the name of our self-managed super fund?
Your superannuation benefit can be taxed at three stages: When making contributions, when a super fund earns income and when receiving super benefits
Q: I am one of those people (and my wife) who made the decision years ago to invest in property rather than super. Now at 60, (wife 55) I am retired and live off my property investments. I have 14 tenants in 2 separate complexes and a separate house all in different locations. I would like to get rid of the properties at about age 65.
Q: I am about to make a capital gain of about $200,000. My marginal tax rate is 30% and I am an employee and 43 years old. I want to contribute the equivalent of the capital gain to my super, which is not self managed, so I save some money for the long run?
Hi - I'm Trish Power, author of Superannuation For Dummies and many other books on super and investing.
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