Half my AVZ shares are within my SMSF, and half are outside super.
With the 12 months CGT discount, I will pay 10% tax on profit for shares sold from my SMSF.
I will pay 22.5% tax on profit for shares sold from my shares held outside of super.
Not that I am planning to sell any AVZ shares in the future, but later this year I might sell say 10% to buy a few luxury items, and assist my daughters with their first real estate venture. However, which shares to sell, from my super shares or from my normal shares, is a question that I have not resolved yet.
Say I need to free up $100k, or some multiple of that, to buy a luxury item for example. Perhaps my options are:
1. Sell $111k of my super shares, which will leave me with $100k, but held within my SMSF account. I am 61, hence, my understanding is that I can take a lump sum out of my super account without any tax penalty. However, I have not yet read about this topic fully.
2. Sell $129k of my normal shares, which will leave me with $100k in my normal bank account.
Comparing the above two options, if the AVZ sp quadruples from here within the next year or so, which is highly likely, then my thoughts are that I am best not selling shares now from my super account because with a quadrupling in sp, the difference in tax paid (10% vs 22.5%) will be significant. Plus by selling shares from outside of my SMSF, I don't need to bother myself with the complexities of taking a lump sum out of my SMSF.
I am leaning towards selling say 10% of my normal AVZ shares later this year, but only when I need to. However, as I am not yet fully up to speed with the super tax considerations for super withdrawals, any comments regarding my strategy will be welcome.
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