If your client is a small business entity and their turnover is less than $2m then you do not need to consider the maximum net asset value test. However if they do not meet the definition of a small business entity then they must satisfy the maximum net asset value test which is currently $6 [...]
Capital Gains Tax
Capital Allowances and Impact on Capital Gains Tax
Many people ask how capital allowances impact on the calculation of the capital gain when disposing of a property. Capital allowances are covered by Division 43 of the Tax Act. Effectively this allows someone to claim a write-off for the building construction costs over a period of time. If a taxpayer is selling an investment [...]
What is the Market Value for CGT Small Business Concessions ?
Syttadel Holdings Pty Ltd sold a CGT asset, the Spinnaker Sound marina at Sandstone Point, in August 2006 for $8.9 million. Syttadel had acquired the asset, comprising land, buildings, marina berths, goodwill and plant and equipment, in June 1996 for $1.675 million. The venture was not initially profitable but by 2006 its net profit was [...]
Property Inheritance and Taxes
The passing away of someone you love is a tragic event but not taking into account the tax considerations on sale of any property you receive from an inheritance as part of that estate can cause further grief. Main Residence If the property was used as the main residence of the deceased then any capital [...]
Subdividing the Family Home
Do you need to pay capital gains tax when you subdivide your family home from one block into two or more blocks ? Subdividing an original block into two or more blocks does not , in and of itself, lead to a capital gains tax event. It is considered for capital gains tax purposes that [...]
Capital Gains Tax – Renting the Family Home
In our global economy it is becoming more common for people to move once, twice or more during their lifetime. Many of these people have purchased a home for them or their family and are concerned about the taxation implications if they move and then later on decide they want to sell. There are quite [...]