Forward planning protects with tax treatment

Careful consideration is required for landowners who live and work on their property to ensure transparency at tax time.

Those who use their land for a mix of business and private use require careful planning when looking into accessing Capital Gains Tax concessions, including Small Business concessions.

For example, where landowners have a private residence on part of the land as well as business use assets such as workshop, office and storage.

Having a well written and detailed plan will be particularly useful when concerning the Commissioner of Taxation. Especially where disagreements occur in the tax treatments between income and capital, and various capital gains concessions – including the small business concessions.

This was highlighted during a recent case at the Administrative Appeals Tribunal; the lack of detailed plans determined that a large property sale was ineligible for capital gains concessions.

That’s why AMD encourages our clients to undertake substantial planning to ensure your asset holdings have the most worthwhile tax treatment. Thankfully, we’re here to help that process.

If you would like assistance with planning your business use, feel free to contact our Tax Services team.