Capital Gains Tax Services

Get the facts on asset sales tax

Here in Australia, you can’t sell off a big asset like your business without being taxed, but it can be a little less frustrating if you know what you’re up for from the start. Capital Gains Tax is the tax you pay when you make a financial gain on selling an asset (your home is exempt from this). While it might sound simple, it can become very complex as the amount you are taxed can depend on a range of factors. That’s where we come in.
—— Simplifying CGT

Your CGT payment will vary, depending on:

  • How long you have held the asset
  • Whether or not you made improvements
  • If depreciation is claimed
  • If it is a small business

If you expect you have made a significant capital gain in a financial year it is important to get advice about how to manage it so that you don’t end up with any unnecessary taxes.

Paying Capital Gains Tax

Capital gains tax only applies to specific assets such as a business or investment properties whereas your principle home, personal car or assets acquired before the 20 September 1985, are exempt.
  • Fortunately, if it is a small business you have sold, there is a whole range of concessions possibly available to you and options such as buying another asset to defer your capital gains, or putting some into super to avoid paying capital gains tax.
Capital gains tax is paid each year and, contrary to what it might imply, isn’t actually a separate tax. It forms part of your assessable income and is payable as part of your income tax each year.
  • However, if you make a capital loss you won’t have to pay capital gains tax, but it is important to note that it is unable to offset tax on any other income, and is instead ‘carried forward’ to offset capital gains in future income years.
    CGT applies when you sell an asset, but can also happen if the asset is given away, destroyed or lost, or you are no longer an Australian resident.

Calculating your CGT is complex, but there may be discounts and options like indexation which may be applicable, so it’s important to have a professional walk you through it and explore every avenue so you don’t waste money on tax unnecessarily or miscalculate your expected tax.

Not all capital gains are tangible, which is where this can get confusing. There can be a lot of intricate details in an event where you are only selling a part of the business, buying out a partner, altering your business structure and receiving compensation for lost or destroyed assets.

Tips for getting the best CGT outcome

Being able to calculate and pay your capital gains tax quickly helps alleviate a lot of stress and confusion.
To do this, you need to be sure your records are organised and up to date. This includes: 
Sale contract/s
Receipts of initial and ongoing expenses
Loan and borrowing records
Interest payment records
Valuations

Why choose PCR for your CGT services?

 We are an honest, no nonsense advisory and coaching team who tell it like it is.

 We help you assess your finances and navigate the sales process of your assets.

 We show you how you can predict your CGT, pay it right and get the most out of your profits.

The best way to approach CGT is with a professional, so don’t let your ambitions down with a poor approach to CGT, get it sorted today with PCR so you can feel confident that your CGT is calculated and paid correctly.
Stop tearing your hair out year on year wondering how to work out tax yourself, simply get in touch with PCRAccounting & Advisory today and ask us how our CGT services can take your business to the next level.

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