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, business advice, eBook, Business advisor, tax minimisation, JPAbusiness, Parramatta, taxation, Central West NSW, 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, business advice, selling a business, Business advisor, James Price, seller earnouts, JPAbusiness, Parramatta, contingency payment, Central West NSW, transaction advice, business sale transaction advisor
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, Advice, Capital gains tax
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: Capital gains tax, business advice, eBook, Parramatta, Orange NSW, taxation
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, Advice, Tax, Capital gains tax, eBook, Business advisor, Parramatta, Orange NSW, 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, Advice, Capital gains tax, selling a business, Business advisor, tax minimisation, Parramatta, Orange NSW, CGT
I recently read a blog post about the pros and cons of seller earnouts, which I believe is worth sharing.
The blog post was written by M&A specialist Dave Kauppi from MidMarket Capital, Inc, which is based in Chicago, USA. (You can click here to read Dave’s post.)
It’s a useful article if you’re considering buying or selling a business and you want to explore measures to manage the risks of transfer and protect the value of the business, including delayed or ‘at risk’ payment of part of the purchase price consideration, such as an earnouts.
Topics: Selling your business, Capital gains tax, business advice, selling a business, Business advisor, seller earnouts
