# CGT on share sale - sale value into Super



## Izabarack (23 August 2014)

I am about to start an Account Based pension.   I have some industry super to put in and I wish to put some money, currently held in shares, into the initial account balance.    I cannot talk to my usual tax accountant as he is on holiday, hence my question here.   So, I sell a pile of shares and make a profit and trigger a CGT event, how do I calculate CGT if all the money realised from the share sales is going into the account that will eventually pay the pension?   It might help to say that I anticipate a taxable income of about $30K in the financial year that the pension start up will happen.   Just trying to get my head around this before I go to the pension provider and set things up for real.

Iza


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## sydbod (26 August 2014)

Izabarack said:


> So, I sell a pile of shares and make a profit and trigger a CGT event, how do I calculate CGT if all the money realised from the share sales is going into the account that will eventually pay the pension?




Just my understanding, am not a tax professional so use the following for some general understanding, but ALWAYS use a TAX EXPERT for any final decisions.

Any capital gains is treated the same way no matter where you intend to put the money.
If you make a CG privately (not from within a super fund) then the normal rules apply.
Assuming you held all the shares for more than 1 year **********
Capital Gain = Selling Amount - Base Cost - Expenses
Taxable Gain = half of the Capital Gain
Taxable Income = Other Income + Taxable Gain     (this is the income you would normally pay tax on)

Should you put some of your taxable income towards a Concession-al Super Contribution, then your Taxable Income decreases by the Concession-al Super Contribution amount. Your Super Fund will pay the Concession-al tax when it receives this money.

As you are putting money into super and it is your own money (ie money from the selling of your own shares) some nasty rules come into play. You can only put your own money into super as a Concession-al contribution (claiming a tax deduction from your own income and only paying the concession-al tax within super) provided you satisfy the 10% rule.

Best to sort it out with your accountant.


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