I am about to sell my business and am wanting to know the best way to minimise the tax i pay so i can maximise the amount I have available to purchase IP’s. Or what structure I could/should set up.
I am currently a sole trader, so was basically thinking if I set up a company I might be able to save some tax, then use the company to invest the money, I currently have no collateral so not sure if anybody will loan a company money even if I am a guarantor, or would it be best to buy my first property in my name then use my collateral to help me go guarantor on consecutive properties?
I know i should ask an accountant, but mine is useless, so am looking for one in the near future who will be able to help my with my investing.
Hi benking84,
Be careful, tax avoidance is illegal. Tax minimisation is okay though.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
Thats what I meant….Cheers for cleaning up my terminology.
“The difference between winners and loosers is loosers havent failed enough”
There are a whole range of concessions available for businesses on their sale. Its not something I have looked into, but there is a lot of info out there. Do a search on “small business concessions” and that may pull up something.
Terryw
Discover Home Loans
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Regretfully it is too late change the structure yo have for the sale of your current business but with effect from 1/7/2006 there are a few concessions available to small business owners.
The varying definatitions are too complex to post here but in essence you could sell the business and find the amount entirely CGT exempt if:
1) You are disposing of an active asset for retirement purposes.
Although a lifetime limit appies to this exemption.
2) Dependant on your age at present. If you are <55 the capital
gain must be rolled over to a superanuation fund. Nothing to
stop you purchasing an IP in the Super Fund name.
If over 55 the capital gain can be taken as cash or rolled over to
super and is exempt.
3) The asset has been held for at least 12 months.Few other criteria but that will get you on the right track.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New Shared Equity scheme has arrived – Email us for details.Richard Taylor | Australia's leading private lender
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