Small business CGT concessions at Mosaic Tax Legal are a valuable resource for Australian small businesses building or expanding their business. CGT concessions are a vital tool for many small businesses to reduce taxes and offer relief to entrepreneurs.
The Small Business concessions for capital gains tax (CGT) have been around for more than 30 years, but they have never been heavily promoted. This lack of awareness has led to many small business owners missing out on claiming the relief.
You may have heard the term small business CGT concessions, but what exactly do they refer to? Essentially, small business CGT concessions are reliefs from paying tax. All businesses that incur capital losses are able to use small business CGT concessions to offset the amount of capital gains they incurred. But, how are these small business CGT concessions different depending on the industry you’re in?
The CGT concessional small business tax offset (CGT offset) helps small business owners or their shareholders reduce the impact of CGT imposed on the disposal of assets used in their business. The CGT concession allows individuals to defer paying tax on capital gains that arise from assets held for more than 12 months. To qualify, an individual must be an Australian resident for tax purposes, and the asset must belong to either them or their spouse.
Tax planning for small businesses can be complicated. There is a range of small business tax concessions with CGT concessions that business owners can take advantage of. It’s important to understand how the small business concessions work and how to claim them on your CGT return. Small business CGT concessions are designed to provide relief from tax payable on business income and gains. By attending a small business CGT concession workshop, you may be able to claim a partial exemption or discount on the CGT that you pay on eligible small business assets.