The time to think about Capital Gains Tax is when you purchase the asset.  This is often misunderstood and has major impacts on tax liabilities.  We can help you avoid this mistake by advising:

The Most Tax Effective Structure for Holding Assets

When it comes to the family home, the Capital Gains tax exemption for a Principal Residence suggests that holding the asset in the names of the individuals would be best.  However, you should be aware of the impact of renting out your home for a period of time, or claiming a tax deduction for a home office and how these might cause you to have some portion of any future capital gain become taxable.

Additionally, if your house block is large you need to be aware that the capital gains exemption only extends to a certain size of land and beyond that, the balance may be taxable if a gain arises.

By talking to us we can advise you if it would be better to hold an asset in a company, for asset protection purposes, or a trust, for the purposes of holding assets for future generations.

How to Keep Records to Calculate Future Capital Gains

Most people believe that tax records need to be kept for only five years, however, when it comes to assets this is not the case.  Records need to be kept until the asset is sold and then for five years after that.  Which records need to be kept?  Well, that might include invoices for improvements which were not claimed as tax deductions over the life of the asset.  By keeping the correct records, we can help minimise your capital gains tax.

Accurate Calculation of Capital Gains Tax When the Asset is Sold

It is not commonly known that there are two methods to calculate the capital gain.  This is a result of changes to the legislation over time and we know the difference in how to calculate this so it works for you.  Take advantage of our specialist knowledge and contact us today.

Strategies to Help Reduce the Overall Tax on Capital Gains Including the Use of Capital Losses

We advise a number of strategies to reduce the tax on your capital gains.  This might include advising which structure to hold the asset in, when to sell the asset for maximum tax advantage, ensuring your records are complete so that the cost base of the asset is accurate and how to apply capital losses against any capital gains.

Records and Reporting Requirements to Satisfy the Australian Taxation Office

Without well-kept records you could find yourself facing an unnecessarily large tax debt.  Our advice, from the start, can help you avoid this problem.

The Complex Rules Surrounding Inheritance and Capital Gains Tax

When you sell an asset that was inherited, often there is a capital gain or loss and you need to know the cost base of the asset to quantify this.  Inheriting assets usually means that you have limited access to historic records which are needed to determine the cost base.  We can help you with this as we are often approached by clients with this issue.

The buying and selling of major assets require expert advice which we have been helping clients with for many years.  Talk to us now and be assured you are in the best possible position.

Contact us today.

Disclaimer:
The above services are provided by Stanley & Stewart Accountants Pty Ltd ABN 76 114 691 673, trading as Stanley & Stewart Chartered Accountants, a company that is not licensed to provide financial planning services.
Any financial planning services required are provided by Stanley & Stewart Financial Planning Pty Ltd ABN 97 611 554 299, an Authorised Representative of Politis Investment Strategies Pty Ltd ACN 71 106 823 241 AFSL No 253125.
Liability limited under a scheme approved by Professional Standards Legislation.