When it comes to CGT, if you’re a small business operator or sole trader, the concessions and write-offs available are enormous. In particular, small business concessions apply when you sell taxable assets that aren’t used to produce income. These concessions include deductions for capital expenses and personal use assets.
At Mosaic Tax Legal, we provide advice to clients on taxation matters, including small business CGT concessions. At the least, small business owners are taxed on the bulk of their income, and for most, this means paying 30 per cent tax. There are, however, some concessions available for small businesses that can reduce these taxes.
What is Mosaic Tax Legal?
Mosaic Tax Legal firm, Sydney is a team of dynamic, proactive professionals who deliver expert advice, support and solutions to individuals, businesses, professionals and organizations who face the prospect of significant financial penalties or criminal charges.
Mosaic Tax is the leading provider of corporate tax services in Sydney. We provide a comprehensive range of corporate tax services to both private and publicly traded companies. At Mosaic Tax, we believe that effective corporate tax planning is the key to minimizing your tax liability. We have been providing comprehensive corporate tax services to a diverse range of businesses.
What is Capital Gain Tax?
Capital gains is an amount that is taxed usually at a lower rate than the regular income tax. The capital gains gain is the difference between the amount of the gain on the sale of an asset and the basis (the amount paid to acquire that asset). Capital Gains Tax (CGT) is generally charged on the difference between your asset’s sale price and its basis.
Conclusion
In conclusion, small businesses can now defer or delay paying tax on capital gains. The deferral period starts from the date a capital gain is recognized and ends no later than 10 years from the date the capital gain is realized. For more information about small business CGT concessions with Mosaic Tax Legal.