The key CGT issue when transferring assets in a non-arm’s length transaction (i.e. the sale price may not be at fair market value) is the market value substitution rules.
These rules basically mean when you’re selling assets and the transfer is deemed to involve parties not acting on an arm’s length basis, then the CGT rules impose what would be a fair market value on the transaction.
[This information comes from our eBook: Capital Gains Tax 2.0 – Issues to consider when selling your business.]
Topics: Family business, Capital gains tax, Succession planning, eBook, tax minimisation, taxation, business succession
If you are considering selling a business at the larger end of the SME market, with a longevity of orders and forward earnings, it’s important to consider the concept of earnouts and contingency payments, because it will come up from interested parties.
It’s also important to recognise that earnouts as part of the purchase price have capital gains tax implications, so expert advice is essential.
Topics: Buying a business, Capital gains tax, selling a business, seller earnouts, contingency payment, transaction advice, business sale advice, earnouts
In 2014 we published an eBook titled Capital Gains Tax – Issues to consider when selling a small to mid-sized business. This eBook drew on extensive experience, including that of our guest contributor Michael Pisani, partner at Chapman Eastway, and remains one of our most popular publications to date.
Given the far-reaching scope of Capital Gains Tax (CGT) and the ever-evolving nature of taxation laws, in 2017 we released Capital Gains Tax 2.0 – Issues to consider when selling your business. The new eBook did not replace the original, but instead complemented it.
Over the past few months, the JPAbusiness team has been reviewing and updating the information in both eBooks, to reflect the most recent changes in Australian tax policy.
Topics: Selling your business, Capital gains tax, selling a business, seller earnouts, CGT, business sale advice
The following information comes from our updated eBook: Capital Gains Tax 2.0 – Issues to consider when selling your business.
The key CGT issue when transferring assets in a non-arm’s length transaction (i.e. the sale price may not be at fair market value) is the market value substitution rules.
These rules basically mean when you’re selling assets and the transfer is deemed to involve parties not acting on an arm’s length basis, then the CGT rules impose what would be a fair market value on the transaction.
Topics: Business transfer, Family business, Capital gains tax, eBook, taxation, business succession
Small Business Capital Gains Tax (CGT) Concessions can provide generous and attractive concessions for small business, and the structure of your sale transaction may impact whether or not you qualify for the concessions.
However, you must obtain advice from a CGT specialist to ensure the structure you choose is not deemed to be tax avoidance. Remember, tax minimisation is legal – tax avoidance is not.
The following blog is an excerpt from our updated CGT eBook, Capital Gains Tax 2.0 – Issues to consider when selling your business.
Topics: Selling your business, Tax, Capital gains tax, selling a business, taxation, CGT
In 2014 we published an eBook titled Capital Gains Tax – Issues to consider when selling a small to mid-sized business. This eBook drew on extensive experience, including that of our guest contributor Michael Pisani, partner at Chapman Eastway, and remains one of our most popular publications to date.
Given the far-reaching scope of Capital Gains Tax (CGT) and the ever-evolving nature of taxation laws, in 2017 we released Capital Gains Tax 2.0 – Issues to consider when selling your business. The new eBook did not replace the original, but instead complemented it.
Over the past few months, the JPAbusiness team has been reviewing and updating the information in both eBooks, to reflect the most recent changes in Australian tax policy.
Topics: Selling your business, Capital gains tax, sales advice, selling my business, earnouts
