Taxation Tips

March 22, 2019

Tax Implications When Selling a Business

When it comes to selling a business, it’s never as simple as it seems. There are a number of factors to consider and one of the majors ones that is often overlooked is Capital Gain Tax (CGT). CGT arises when you sell or dispose of an asset that was acquired on or after 19 September 1985, minus any capital losses – and this includes businesses. Under certain circumstances, company/trust shares may be subject to CGT even if acquired before this date. Though there is good news for small business. Concessions are available for small business owners that meet certain criteria– making it possible to reduce the CGT amount. The turnover threshold for CGT concessions is $2 million. According to the ATO […]
September 5, 2017

How to Sell Your Business, Tax Effectively

Too often business owners fail to take advantage of the generous capital gains tax (CGT) concessions available when selling a business. It takes hard work and dedication to build and manage a successful business, but all that effort could amount to very little if you end up being hit with high CGT on the sale proceeds. There are four CGT small business concessions available under Division 152 of the Income Tax Assessment Act 1997 (Cth), each potentially providing you with sizable tax savings on the sale of your business. If you are currently in the process of selling your business or thinking about doing so in the not too distant future, it is important to keep the available concessions in […]
January 9, 2017

Capital Gains Tax When Selling A Business

If you invest in property, capital gains tax (CGT) will raise its head when you’re at your happiest – when you make a profit from the sale of a dwelling. But there are a couple of ways to make healthy profits from real estate and avoid paying CGT. These include extending or renovating your home and then selling it (making use of the main residence exemption explained below), buying a property through your self managed super fund (SMSF), or renting out your home and then selling it. Avoid CGT if it’s your main place of residence You can avoid paying CGT if you sell a dwelling that’s considered you main place of residence. You can only ever have one main […]