CAPITAL GAINS TAX ADVICE CAIRNS
Are you confused about managing the capital gains made on your investments? Do you need assistance with capital gains and losses for investments, commercial properties, small business concessions, or business disposal? Our experienced accountants in Cairns at Gary Wilkins & Associates can help.
By keeping an eye on your investments throughout the year, we can help you plan to factor in concessions and minimise capital gains tax. Our expert advice can also guide 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, which is why it’s crucial to seek the right advice from specialists in the field. Let us help you make the most of your investments and secure your financial future.
Calculating capital gains tax accurately depends on several factors, including:
- 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 these figures, it’s much easier to determine what you will owe. Remember that capital gains affect your taxable income and can change your marginal tax rate for the year.
You can also reduce a capital gain by 50% if you have held the asset for over 12 months.
The Capital Gains Tax (CGT) event is the point in time when 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.
If you want to learn more, speak to our Cairns accountants.
You incur a capital loss if you sell something for less than what you paid. You can then use this loss to offset a gain, effectively reducing the capital gain made during the same year. If you have more losses than the gains, or if you only have losses, you can carry those forwards. There is no time limit for the losses.
You can deduct the losses carried forward 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 advise on the best way to handle the sale by showing you how to manage the intricacies of capital gains tax. Throughout the years, we have helped clients with asset management. This includes knowing the right time to buy and sell in order to maximise profits and minimise taxes.
Get in touch with us today.
Are inherited assets subjected to CGT?
If you have inherited assets that are treated the same as any other asset when it comes to CGT. However, if you inherit property and it becomes your main place of residence, it will be exempt.
Are there any assets exempt from CGT?
If you acquired assets prior to 20 September 1985, they are exempt from CGT.
There are other CGT exemptions, such as;
- Your primary place of residence.
- When eligible granny flat arrangements are made, varied, or terminated, Capital Gains Tax (CGT) does not apply
- Vehicles that carry fewer than 9 people and carry a load of less than 1 tonne are exempt from CGT
- Decorated awards
- Competition or gambling prizes
- Plus payouts of some super and insurance policies
To determine if your assets are exempt from CGT, please contact our team to learn more.
What is the six year rule?
If you rent out or make your former home available for rent, you can still treat that property as your main residence for up to six years after you stop living there. This is often referred to as the ‘six-year rule’. However, you cannot claim any other property as your main residence at the same time (except for six months while moving home).