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I’m interested in your opinion please on CSL moving forward. How high can it realistically go?
I hold 906 shares, cost base $1.27 ea @30.06.94 = $1,149.71.
As at 12/4/17 they were $127.71 ea = $115705.26 so Capital gain of $114,555.55.
Dividend for the year was $1541.45
I was thinking of selling them as they have increased greatly and reduce my home loan ( interest rate of 3.89%). I am 58, single and thought I could offset the gain with selling some shares that will result in a loss eg Oz minerals, Telstra T3 and some AMP purchased at $12.48……
I could also offset the capital gain by making a contribution to my SMSF which with the new legislation while it’s possible to contribute a larger amount. Is this a correct way to reduce CGT?
Appreciate your opinion
A: What a fantastic position in CSL!
There is an old adage in markets that goes “let your profits run”. It is matched by “cut your losses”.
Although CSL is starting to look horribly expensive (yet again), my inclination is to hang on…..
If you do consider selling, maybe you only take part of your holding off the table. Perhaps enough of a gain to offset the losses from selling AMP, Telstra and Oz Minerals.
Finally, a super contribution won’t reduce CGT. If the CSL shares are held in your name, any disposal (which includes a sale on the ASX or an in specie contribution to your super fund) will crystalize a gain for CGT purposes. As you have held the CSL shares for more than 12 months, you will be entitled to a 50% discount – so your taxable gain will be about $60,000.
Hope this helps
Regards
