CAPITAL GAINS ADVICE
Are you confused about how to manage the capital gains made on your investments? For expert advice on capital gains and losses for your investment properties, commercial properties, small business concessions or disposal of your business, our specialists at Gary Wilkins & Associates in Cairns can help.
We can look at your investments throughout the year so you can plan ahead to factor in concessions and minimise capital gains tax. We can also advise you on when to sell specific investments for the best financial results, in the coming years. Small mistakes when it comes to investments can cost you big money, that’s why it’s so crucial that you get the right advice from experts who specialise in the field.
Tax Calculations
Getting an accurate calculation for the amount of tax you have to pay in capital gains is dependent on a few factors, those factors include:
- Length of time you held the investment
- Your marginal tax rate
- How many capital losses you’ve incurred
- When you disposed of the investment
Once we have all these figures, it’s much easier to determine what you will owe. Keep in mind that capital gains are factored into your assessable income and can have an impact on your marginal tax rate for the year.
It’s also possible to reduce a capital gain by 50% if you held the asset for over 12 months.
CGT Event
The Capital Gains Event (CGT) event is the point where you sold the assets and incurred the capital gains or losses.
It’s also when a managed fund you own distributes capital gains to you.
Capital Loss
If you sell something for less than what you paid, you incur a capital loss. This loss can then be used to offset a gain, in effect reducing the capital gain made during the same year. If the losses are greater than the gains, or if you only have losses, it’s possible to carry those forward, there is no time limit for the losses.
Those losses that are carried forward are then deducted from capital gains made in future years. The key is knowing how to balance the gains and losses. Proper planning makes the tax implications of the entire process much easier.
We can help you navigate your way through the capital gains process to ensure the best financial outcome for you. If you are considering selling off an asset, arrange an appointment with one of our expert consultants first. We can evaluate your individual situation and advise you on the most appropriate time to do so.
Our specialists provide advice on the best way to handle the sale and will show you how to manage the intricacies of capital gains tax. During our many years in the industry, we’ve helped many of our clients get a better understanding of how to manage their assets, when to buy and when to sell, in order to maximise their profits and minimise their tax.
Get in touch with us today.