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Tax on Sale of a Business

Achieving a tax effective sale
Different asset categories
Concessions on sale of a business

 

When clients have sold their business or are considering a sale there are a range of tax issues that need to be considered. In some cases, prior planning can help clients achieve a much improved tax outcome and your involvement in the process as early as possible will often help in ensuring clients take full advantage of the concessions contained in the tax system and avoid some of the pitfalls that can arise if the process is not managed carefully.

 

This module helps you work through those issues.

 

See the IQ module outline. 

 

 

The Tax on the Sale of a Business Module is part of the Principal & Manager I Program of 10 modules specifically designed to manage the training needs of your Intermediate team members across a year.

 

More on the Principal & Manager Program

Principal Manager program Level
Principal/ Manager

Length
91.08 minutes + quiz questions

Access
24/7 for 12 months

Resources
Downloadable reference notes

PD Hours
2 PD Hours

Introduction & Outline (2:08)

  • What we’ll cover

 

Apportioning sale proceeds (2.55)

  • What is being sold
  • Determining allocation
  • When there is no agreement between the parties
  • Impact of TD 98/24
  • Depreciating assets

 

CGT discount (7.04)

  • How the discount apples
  • 12 month holding rules
  • Integrity rules
    • CGT events and shares in a company or units in a trust
    • The essential steps

 

Quiz | Sale of a trust (2.27)

  • Quiz Alice
  • Quiz Answer Alice

 

Pre CGT assets (7.16)

  • What to be aware of
  • The implications of Division 149
  • CGT event K6 and what to do if it’s triggered
  • TR 2004/18

 

Small business CGT concessions (5.28)

  • What to look out for
  • Prior planning
  • Part IVA
  • The problem areas

 

Basic conditions (9.21) 

  • A work through of the rules and the issues applying them
  • The extra tests

 

Quiz | Commercial property and the active asset test (1.48)

  • Quiz Judy
  • Quiz Answer Judy

Applying the concessions (10.05)

  • 15 year exemption
  • 50% active asset test
  • Retirement exemption
  • Rollover relief
  • Interaction with the super rules

 

Quiz | Sale of business and access to the small business CGT concessions (2.12)

  • Quiz Alan
  • Quiz Answer Alan

 

Scrip for scrip rollover (2.56)

  • Main conditions for the rollover
  • Additional conditions and when they apply

 

Earn-out arrangements (11.35)

  • How they work
  • The look through arrangements
  • Issues and implications
  • Tax treatment

 

Quiz | Jenny Goodwill and the earn out arrangements (2.28)

  • Quiz Jenny
  • Quiz Answer Jenny

 

Revenue adjustments (7.13)

  • Depreciating assets
  • Trading stock
  • Debtors
  • Work in progress

 

Losses (1.43)

  • Managing losses and what can and can’t be done

 

GST & the going concern rules (12.13)

  • GSTR 2002/5
  • Fallback position

Quiz | Application of the going concern rules (1.09)

  • Quiz Max
  • Quiz Answer

IQ Presenter

Michael Carruthers

 

Tax Director, Knowledge Shop

Michael Carruthers Director Knowledge Shop

Michael oversees the development of the tax team for Knowledge Shop and Hayes Knight in Sydney and is head of the Hayes Knight group’s national tax committee. 

 

Michael has a knack for seeing through the complexity and helping practitioners work through highly technical issues with certainty and accuracy. 

 

He is a member of the advisory panel for the Board of Taxation and was an expert panel member for the Board of Taxation’s review of tax impediments facing small business.

 

Linked In

AAA_SEAL_2016_Winners_THOUGHT_LEADER_OF_THE_YEAR.png

Michael was the Thought Leader of the Year at the 2016 Accounting Awards