I sold an investment property this FY and made some 100k capital gain. Understood that 50% is tax free and the other 50% is my taxable income. If I contribute 30K to my super fund, can I claim tax deduction? How will ATO treate the 30K contribution, that is from the 50% tax free portion or the taxable 50%? Assuming I have met all the criteria for concessional contributions and followed all the ATO and Fund requiremen
Hi Sunnyaci,
Welcome to ATO Community.
If you decide to contribute some of the capital gain towards super, there should be no problem claiming a deduction for the contribution (assuming the required steps with the ATO and the super fund are satisfied).
Bear in mind, a contribution is considered to have been made when the fund receives it, not when it is paid by you to the fund. It's a good idea to check with your super fund to see if they will still be able to receive it in the 2021-22 year. If they can't, it would mean the deduction could not be claimed until the 2022-23 year.
In addition, it's a good idea to quickly check you will have sufficient concessional contribution cap space to claim the deduction.
I hope this helps.
This is my personal view; I'm an ATO employee who chooses to help out here in my own time.
Hi Sunnyaci,
Welcome to ATO Community.
If you decide to contribute some of the capital gain towards super, there should be no problem claiming a deduction for the contribution (assuming the required steps with the ATO and the super fund are satisfied).
Bear in mind, a contribution is considered to have been made when the fund receives it, not when it is paid by you to the fund. It's a good idea to check with your super fund to see if they will still be able to receive it in the 2021-22 year. If they can't, it would mean the deduction could not be claimed until the 2022-23 year.
In addition, it's a good idea to quickly check you will have sufficient concessional contribution cap space to claim the deduction.
I hope this helps.
This is my personal view; I'm an ATO employee who chooses to help out here in my own time.
Hi Elwin,
Thank you so much for helping!
In my example the total capital gains = 100k, taxable capital gains = 50k (ie. 50%).
If I contribute 30k from my capital gains towards super under personal superannuation contributions, does it mean my taxable capital gains is reduced to be 20k (ie. 50k-30k)?
Would ATO regard this 30k as before tax contribution (concessional), or after-tax contribution (non-concessional)?
I’m looking at ATO’s ‘Tax Return for Individuals (Supplementary Section)’ and trying to fill in below items:
Item 18. Capital Gains:
Total current year capital gains = 100,000
Net capital gain = 50,000? or 20,000?
Item D12. Personal Superannuation Contributions: H = 30,000
Should I fill in the Net capital gain as 50,000, or 20,000 (ie. 50k minus 30k the Personal Superannuation Contributions)?
Thanks so much again,
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