Should I vendor finance or sell a lease for my $1M hotel to avoid CGT?

C

CandlesRydr

New Member
Selling my hotel... an even million $. Do I vendor finance? Or sell a lease with an option to purchase at the end of 3 years? Pros and cons? Capital gains tax will possibly chew uup the majority of the 300k deposit a bloke wants to put down, as it’s due on contract signing rather than when it is actually “sold” after his last payment—so is it better to sell a lease to get revenue in and deal with CGT later? I have a meeting with my accountant tomorrow... just thought I’d bounce it off someone knowledgeable here to give me ideas/options going into the meeting. Cheers
 
With a put and call option structure, you can still get early access to the buyer’s money, but you need to handle it carefully so you don’t accidentally trigger CGT upfront.
 
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