How to Avoid Paying Unnecessary Capital Gains Tax

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How to Avoid Paying Unnecessary Capital Gains Tax

By Michael Beddoes

When you are planning for sale, one of the largest costs can be Capital Gains Tax (CGT).

The good news: Done properly there may be no CGT when you sell!

The bad news: Without expert assistance and early planning, you may find yourself with extra CGT to pay that could have been avoided.

Some quick tips:

  • Splitting sale price between the onsite Managers Residence and Management Rights business (2 separate contracts)
  • Managers residence owned in personal names to access Main Residence CGT exemption
  • Using any available Capital Losses
  • Holding for at least 12 months to access 50% discount
  • Accessing Small Business CGT Concessions which include 15 year CGT exemption, further 50% discount, $500,000 Retirement Concession, CGT deferral
  • Use of super contributions to reduce tax
  • Using Trusts to reduce CGT by spreading across various family members
  • The best tax planning is done when you buy, and getting assets owned in the correct names

As with all things tax, the key to success is a combination of expert advice from Management Rights tax specialists and thorough planning well before the sale. Our experienced team can walk you through your options and help you get the best price. Enter your details below to learn more!

All information provided here is general in nature only, in preparing it we did not take account of your individual and financial situation or particular needs.