If you’re running a small business and you’ve made some money from selling assets (like property or equipment), there’s a fantastic tax break you might not be taking full advantage of the Capital Gains Tax (CGT) small business concessions.
Here’s the lowdown in simple terms:
1. What’s the Concession?
– These concessions can help you either eliminate or reduce the tax you pay on the money you’ve made.
– If you put the money into your superannuation fund, you might even get away with paying no tax at all.
2. The Roll-Over Concession: What’s That?
– This is a bit like pressing pause on the tax you owe.
– If you use the money from selling something in your business to buy a similar “replacement” within two years, you can delay paying the tax on your profit for two years.
3. Why is this Useful?
– Well, first off, it buys you time. You can figure out what to do with the money and whether you want to jump back into business.
– And here’s a neat trick: After the two-year pause, if you’re 55 or older, you might not have to pay any tax on the profit. If you’re younger, you might have to put the money into your super fund, but that can be a smart move.
4. Continuous Rollover Magic:
– If you buy something new with the money and then that thing gets old or you sell it within two years, you can use the profit again to buy something else.
– You can keep doing this until you retire, and then you might pay no tax on all those profits.
5. Important Note: Get Professional Advice!
– Taxes can be tricky, and it’s smart to talk to someone who knows the ins and outs of the tax world. A tax professional can help you make the most of these opportunities.
In a nutshell, if you’re a small business owner who’s made some money from selling things, take a closer look at these concessions. They might just save you a bundle in taxes!
Remember, while simplifying complex tax information, it’s crucial to maintain accuracy. Always consult with a tax professional for personalised advice based on your specific situation.