If you will likely pay no tax in 2018/19, and you sell into the...

If you will likely pay no tax in 2018/19, and you sell into the buyback closing this week, you will likely get around $27 cash from BHP and and entitlement to return of franking credits equal to around $12 per share sold. This is a total of $39 and represents a 20% tax free gain on your original purchase. Not bad!! Of course you don’t get the franking credit refund until after the end of the current financial year wp.s.hen you do your tax return.

in any event you will be getting a total of around $39 per share and a capital loss because you bought your 125 shares at $32 but sold for a very small capital component.

BHP will guarantee acceptance of small parcels in the buyback but you must tick the box for FINAL PRICE  TENDER. A good strategy is to buy back your shares on the market if you wish in late December when you get your money from BHP and get the benefit of the special dividend in January.

p.s. I own a large parcel in my SMSF and will be doing this. Remember, do your own research and consider your own personal financial circumstances. Good luck!