I’m looking for an accountant with landbank experience. I have acquired an acreage with large potential and was told some time ago that the way to minimise CGT was to purchase in a personal name, hold more than 12 months and prior to a sale, start a “business” on the land ie. stables, crops, kennels etc to qualify for small business tax exemtions.
Can anyone verify this ?
Also if anyone can recommend me to an accountant with experience in these areas and also possibly property development expertise.
I don’t mind location, happy to have a phone relationship. Looking for the best possible advise. I hate paying tax.
Did an accountant or tax expert give you this advice? Unless you are using the land for a PPOR, there is no difference with buying in your own name or the name of a trust. A trust would have many advantages, such as the ability to distribute income and asset protection.
The '12 months' part is correct, because assets held for over 12 months are only taxed on half of the gain when they are sold. Note, this exemption does not apply to companies.
I'm not sure what small business exemptions your advisor was talking about, but whether there is a small business or not on the land makes no difference to the CGT calculations. You may get some other business deductions, but these may cost you more than you are saving in tax.
You may be eligible for small business CGT exemptions if you qualify under the small bus exemptions rules, but you will be required to be actually carrying on a business.
you will also find the PPOR CGT exemption is only land up to 5 acres
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sounds like you don't need an expert.
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