Tax Savings Strategy 211 | Sell a Business and Pay No Tax
This strategy involves selling your business and paying no tax. This strategy only applies to businesses that pass either the $2 million turnover test or the $6 million net assets test. The three tax strategies that can achieve this are listed in the order of their attractiveness:
- 15 Year Small Business CGT Exemption.
- Retirement Exemption – CGT Concession for Small Business.
- Small Business CGT Rollover.
Although the three tax strategies can all result in no tax payable on the business sale, they are not equally attractive. The 15 year small business CGT exemption is the best as if this is applied no tax is payable now, or in the future. In contrast, with the small business CGT rollover, no tax is payable now, but it is only deferred into the future.
Similar posts you may like
- Ten tax time scams that target Australian taxpayers
Tax scams are becoming more frequent and sophisticated year after year. Here are ten tax scams that target Australian taxpayers at tax time: Australian Read more
- Tax Savings Strategy 208 | Trust Cloning Using the SBRR
Trust cloning involves setting up a trust (the ‘cloned trust’) with the same terms and beneficiaries of another trust (the ‘original trust’). Assets may Read more
- SMSF carrying on a business
Subject to compliance with the SIS Act and the sole purpose test, the ATO has confirmed that SMSF's can carry on a business. Although Read more
- Tax Planning Sin 4: Failing to Gather Client Information and Data
Just as financial planners need to know their clients when preparing a financial plan, so too do accountants need to know their clients when Read more
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2