All Topics / Legal & Accounting / Minimise CGT on commercial property

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  • Profile photo of magic32magic32
    Participant
    @magic32
    Join Date: 2005
    Post Count: 49

    Hi,

    For individuals (husband and wife) selling a commercial property (shop + a residence) is there any way to minimise the CGT on sale, aside from the 50% discount for holding for more than one year.

    Thanks

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Have you taken into account any capital works or improvements that you have undertaken (and added back any depreciation claimed)?

    Profile photo of Dan42Dan42
    Member
    @dan42
    Join Date: 2008
    Post Count: 619

    Have you used the commercial property in your own business, or is it a straight rental?

    Profile photo of magic32magic32
    Participant
    @magic32
    Join Date: 2005
    Post Count: 49

    It's just a straight rental.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    small business concessions possibly.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of BenjeBenje
    Participant
    @benje
    Join Date: 2012
    Post Count: 6

    small business concessions won't apply if it is not an "active asset" (i.e. used to operate business in an entity connected with you) for at least 50% of the time you own the property. 

    How old are you? Do you receive employment income? Could super be any option?

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618

    Super is probably your best option. Unless you are self-employed you will probably need to salary sacrifice which means you need to plan ahead – no good signing a contract on 29 June and trying to start salary sacrifice then as you won’t have enough salary coming in to make a difference. Also any super contributions your employer makes are counted in the $25000 limit and the important thing to also remember is it is the date that super payments are made by your employer to the fund that is used not the date payments are deducted from your salary

Viewing 7 posts - 1 through 7 (of 7 total)

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