Small business CGT concessions: The SBE and $6m net asset value basic conditions
Source: The Tax Specialist Journal Article
Published Date: 1 Apr 2014
The small business capital gains tax (CGT) concessions are critical upon small businesses selling assets such as goodwill and real property as well as business restructuring. This article examines the alternative small business entity (SBE) and $6m net asset value basic conditions that small businesses need to be met to access the small business CGT concessions. While this article finds that the alternative SBE test and net asset value basic conditions clearly allow the vast majority of small businesses to potentially access the four small business CGT concessions, there are a number of other factors that work to limit its practical scope, such as further restrictive conditions and the high level of complexity.
Many small business owners appear to be ignorant of the CGT implications of their decisions when they commence operations and as they grow their businesses. Tax practitioners and administrators need to understand these complex rules and work closely with small business. In particular, tax practitioners will need to be proactive in dealing with their clients to ensure eligibility and to maximise the four CGT concessions.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
- Published By: Paul Kenny
- Published On:1 Apr 2014
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page