WCC 2: 4 ways to get Capital Gains Tax Free

Good morning. Morning everyone. Morning, morning, Jason here. Hoping everyone had a good weekend. I certainly did, had a nice relaxing one. I hope you did too. Hey listen, today I want to talk about capital gains tax and capital gains tax is one of those taxes or calculations as a property investor that you know is the the big boogeyman. If you ever sell your property, you’re always like, ” well, how much capital gains tax am I going to pay?” Well, Here is four ways, four ways You can have zero, zero capital gains tax no capital gains tax as a property investor. And I was just thinking on the four of them maybe five. Well, there’s one way you can never never pay capital gains tax and that’s never sell, never, never, ever sell. But for those of us who are monopolized for those who I’ve asked who are at a point where we’re either sometimes forced to sell or sometimes planning on selling, we need to be smart about that. We need to understand how we can minimize those taxes, maximize the gains for ourselves and our family and our future and our wealth. So yeah, four ways to have capital gains tax at a zero calculation for you as a property owner. Number one, everybody should know this one your home, your owner occupied property, owner occupied property is capital gains tax free. The house that you live in. I do know a fair few people who have an owner occupier upgrade strategy. I really liked the owner occupied upgrade strategy where you buy a nice house, a nice area and whatever, whatever budget you can afford at that point in time. And over the years often it’s usually between three and four times you do an owner occupier upgrade from one style of property and area to another style of property in an area. Every six to 10 years is a good timeframe. If you want to be in that owner occupier upgrade, there’s no cost to you from a tax point of view. If you buy and sell your owner occupied property. Now, if you do it in under 12 months and do it all the time the ATI will sort of think you, sniff that one out, but three times over 30 years upgrade fantastic capital gains tax free. You go from a property-owning a property in that, where let’s say we started out right now. Let’s use this as an example. Most people can’t afford most people on, maybe a Julian income can afford 500[Inaudible] property. So you buy that at whatever level you’re at. You stay there for five to 10 years. You might add some value. You might fix it up, I like people to do that. Once that property goes up in value, you can sell that property, take the profits. Your family might grow, your style might change. And then you upgrade to another property and you do that three times. Okay. So number one, owner occupied property. Number two capital gains tax free property is when you own a property with your super, okay, a self managed super quickly. And There’s some tricks and ways to get that right You should talk to a financial planner about owning a property in your super save as appropriate for you. But if you do own a property in your super or any asset in your super, when you put that super fund into retirement phase, there’s a accumulation phase. And there’s a retirement phase. When it’s in a retirement phase, you can sell a property inside a super fund capital gains tax free, zero tax which is pretty sweet. Another thing that’s amazing about owning assets in a super fund, I’m a big fan of that. I think everyone as a property investor should build their assets inside and outside of super, in retirement your income that comes from your super so in the retirement phase is tax free as well. So no income tax and no capital gains tax under a threshold at this point of 1.6 million you put a couple together that’s $3.2 million worth of assets owned for you. Capital gains tax free, income tax free. Absolutely crazy spot on place to own assets. So that’s another place that you can own an asset capital gains tax free If you ever had to sell it. We work with a couple of very smart financial planners who do some very clever things when it comes to buying and selling real estate and beefing up and funding and growing your super at the appropriate time. If anyone ever wants to find out more about that, track us on and come and have a chat. We’ll introduce you to the right people that we know who like real estate and are great financial planners. Now, number three, number three, the third place you can have a capital gains tax free property as an investor or a property owner is a little bit of a trick one but this is for all the business owners listening in, all the business owners listening in again, you can own a property that you run your business from, and that property, if you qualify for the small business capital gains tax concession of 2 million, there’s a few little qualification questions you have to have been in business for over 15 years and so on. But the property that you own and run your business from can be a capital gains tax free, If it’s deemed the asset of the business because you have a $2 million threshold to sell the business and that $2 million is capital gains tax free. Why is it $2 million capital gains tax free for business owners? Well, by large, small to medium business owners that have businesses less valued less than $2 million, You guys, we guys, all of us, a very average if not terrible at contributing to your super when you pay yourself and the government has said well, listen, I know you won’t, you don’t pay yourself very much into your super if any here have cyl a tax free style asset into the future. If you sell your business, which includes the property the real property that you run your business from, then that can be capital gains tax free up to $2 million bucks. So that’s fantastic. So three places, capital gains tax free ownership, your name in a super and a business that owns a property that they run from. What’s the fourth one. It’s a bit of a trick one, I aside this one all the time, but it is an actual fact, it is for real. If you are a politician, if you’re a politician and you have to go to Canberra and whatever, then you can have two, that’s right two capita gains Tax-free principal, places of residence. How’s that? Alright. The polys they look after themselves, don’t they? they all campaign for us to have, get rid of negative gearing and all this rubbish but now they’re going to have two capital gains tax free properties for themselves. Yeah. What a bunch of lunatics. Anyway, there you go. That’s a trick one. So three real ones. And the fourth one if you want to go to become a politician, but I don’t think that that would be one of the ones that are choose to go and do. A couple little tricks in their , not tricks facts. If you move out of your own home and rent it out, you have got six years, gang, six years. If you move out of a printer place of residence, rent it out, go rent somewhere else. For whatever reason you might travel overseas you might, you might move into state for two or three years. For some reason you might just move around the corner for a few years for some reason, and rent capital gains tax free. That property stays capital gains tax free for six years, six years And that, which is awesome. So you can move back in it starts again, or you can sell that property capital gains tax free six years later which is, which is excellent. So keep it on that one. That was an excellent little concept. And the other one is if you do move out of that property, move by and move into another Prince place of residence. There’s a two year rollover gap between that one and the other one. So for selling the Prince place residence. So hopefully that’S useful gang, as property investors We want to make sure that we end up keeping the money we create. That’s important obviously. And the more you keep the more wealth you create for your future and taxes are one of those things if you structure yourself well, you manage it properly, then you can keep more than others who aren’t structuring themselves well. And that often makes all the difference into the future for what tax minimization. Another little, one little bit of a tidbit a Canberra,[Inaudible] just that they would get rid of stamp duty fell under $500,000 properties and which is brilliant for both first home buyers and investors, which is fantastic. There’s not that many $500,000 properties around in Canberra, but anyway, there you go okay, is going to stimulate their property market. And also you can get a discount between 500 and, and a $750,000 pretty well a 50% discount on the stamp duty. So that’s interesting that popped out. Anyway hopefully it runs well. And if some of those concepts are settling with you and you go, well, I want to find out more track us down. Listen at one of our webinars, you can jump on our Facebook page, send us a message, whatever it is happy to chat to you guys at any time. All right. Hopefully everyone is well thanks for darling in of coffee and a chat. And see you tomorrow about the same time for another coffee and another chat, take care, stay well and buff it out. Cheers gang.

About the Author
From a small town boy growing up in the remote outback of rural Queensland, to becoming the founder of Australasia’s most powerful property wealth creation engine – Positive Real Estate Group CEO Jason Whitton is on a mission to change the way we look at wealth.