As the owner of your commercial or residential space, you can sell any asset/belonging as you please. The profit which you get in return is conventionally known as capital gains. CGTs aren’t levied separately but comprise an essential part of your income tax.
Contact us at Palladium Financial Group and we will provide you with top-notch solutions for capital gains tax Perth. Our capital gains tax accountant will calculate your capital gains by offsetting the money you had invested and gained appropriately. However, before seeking our advice, here are certain things you should know about:
Common examples of CGT assets
Capital Gains Taxes are levied on certain assets which you are allowed to sell. These include the following:
So, you must know which of your assets/belongings can be incurred by CGTs. You can trust our highly learned team of CGT specialists in this matter. Our capital gains tax accountant will evaluate your circumstances and will recommend you the most remunerative assets to sell. So, hire our well-versed capital gains accountant today and get insight into the capital gains tax in Australia.
When it comes to calculating CGT, there are two options that you get. Short term capital gains and long term capital gains. The tax amounts for both must be calculated strategically. It’s levied on your net capital gain at your marginal tax rate. The calculation of CGT can be performed only when a relevant CGT-situation arises, including:
Our CGT specialists conventionally adhere to the following four steps for calculating short term capital gains tax and long term capital gains tax.
This step includes the deduction of the cost base from your sale proceeds. The former includes any costs incurred to the purchase, selling and the price you had paid for the asset. Aside from that some incidental cost also applies and is known as the gross capital gain altogether.
During this step, any potential losses are taken into account.
In this step, any applicable discount factor applies. Individuals are considered eligible for complying with super funds comprising a discount of 33 1/3% aside from a discount of 50%. The asset must be held for 1 year or more for making the discount available. Companies cannot access this amount.
The resultant sum is your net capital gain
CGT Events
Transactions related to straightforward acquisitions of capital or CGT assets are called CGT events resulting in both losses and profits. It’s an imperative component of CGT and chiefly includes the elimination of an asset. A CGT event is crucial in determining your potential losses or gains and their pertinent durations. A GST obligation may also apply to your CGT event if your business is registered to GST. Some of your offshore assets are also subject to CGT in Perth, Australia.
CGT Assets
Apart from buildings and lands, CGT assets are divided amongst a couple of other categories as well. Many of us are often oblivious about them which include goodwill and options etc. However, out of the various categories, there are two most important and distinctive categories. These are the collectable and personal use assets aside from some miscellaneous assets. Besides, collectively owned CGT assets are incurred by certain rules and regulations in Australia. Unless specified no CGT asset should be excluded from the pertinent rules.
The four capital gains tax exemptions which are incurred on businesses include:
The area of CGT accounting is undoubtedly quite intricate. We at Palladium Financial Group have a team of specialists to ease this task for you. We want to act as your ultimate guide when it comes to proficient CGT accounting and management. Have you already sold an asset and are awaiting its tax consequences? Then seek valuable capital gains tax advice from a CGT accountant from our excellent team immediately.
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