Taxation Planning - Deferring capital gains events.

17 May 2023

Admin User

Warning - What can tax planning do to the value of your business -

Managing the timing of a capital gain event can defer the tax payable on the event for a substantial period of time.  It may also reduce the amount you even have to pay, making it a very effective tax planning tool.

When considering selling an asset that will trigger a capital event thought should be given to the following:

1. How long you have held the asset for.

2. Small Business Concessions – What concession are available:

       - 15 Year exemption
       - 50% active asset reduction
       - Retirement Exemption
       - Small Business Rollover

 3.   CGT Discount.


If you are thinking of selling an asset late in the financial year by pushing the sale into July (the next financial year) you can defer the liability for another year, depending on your lodgement history with the ATO.

Also by ensuring you have held an asset for more that a year you may be eligible for the 50% discount.  You may only pay tax on half of the gain.

If you would like to discuss further please contact us:

McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
Phone +61 3 9428 1062

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