Like a number of the long-term holders in AKP, the issue of capital gains tax is (happily) emerging as one of interest. With over 3x gains in the recent period, and hopefully plenty more upside to come, I thought it would be useful to set up a thread to consider the issues around capital gains.
As Hanktanson recently highlighted, any new purchases require a 12 months wait to get a 50% CGT discount. Similarly I hope AKP is not purchased within 12 months as some of my recent purchases would then not qualify for the discount.
For those who live in Australia and have an SMSF established, I understand there is the potential to transfer shares from your own name into the SMSF using an Off-Market transfer. Once in your SMSF, I believe the CGT is 10% after 12 months (or 15% <12 months) rather than ~25% after 12 months (~50% <12 months). These latest figures assume your gains on sale of AKP push you into the top tax bracket...
This could mean that you get to keep 90% of your capital gain rather than 75%. (or 85% rather than 50% if sold less than 12 months). However of course the funds will be in your SMSF, and not accessible until retirement. I'm considering transferring a portion of my holding.
Also, transferring personal shares into your SMSF will trigger personal CGT at the time and value you transfer them into the SMSF. Clearly if you are going to perform such a transfer, you'd prefer to do this before the value of AKP gets too high ('..#Hopes').
One interesting element I've stumbled across and am keen to validate with others, is that it appears that the date of an off-market transfer can be specified as any date in the last 90 days. Clearly this approach would be beneficial, but I'm not sure if this is legit and am keen to get any other readers input.
A relevant link here:
Off-market-transfer-shares-smsf
In any case, thinking about capital gains is a "Success Problem" ...
Interested in anyone else's musing on the subject of capital gains..
Good luck to all holders.
*Note that I am not an accountant, and nothing here should be considered financial advice. Do your own research and check with your accountant.
(20min delay)