Many clients have made significant money dealing with real property in recent years. However, have they correctly dealt with all of the tax issues? These case studies cover the income tax, CGT, GST and stamp duty implications of property development & subdivision, including:
mere realisation vs. carrying on a business - where do you draw the line?
post-CGT improvements on pre-CGT land - what are the consequences?
selling the main residence and/or building on the tennis court - what are the potential traps?
joint ventures (including conversion to community and strata title) - what are the issues?
applying the margin scheme - what are the implications of the recent amendments to the rules?
understanding the decisions in Marana Holdings and Toyama v Landmark Building Developments (and the recent amendments) - what type of supply are you making?
Buying and selling a business can be complex. Identifying and valuing intangibles and the consequent taxation implications can also be difficult. Often clients and their advisors have different views of the value of intangibles. These case studies consider the taxation implications and will cover:
intellectual property rights and their tax classification - copyright, trade marks, designs, patents and trade secrets
valuation methodologies and accounting treatment of intangibles
Small business CGT concessions and related trust issues
The small business CGT concessions offer significant opportunities, but you must be skilled enough to find them! This paper highlights the key issues you need to be aware of in relation to trusts, and budget changes, including:
analysis of the maximum net asset value test
the connected entities rule and the active asset test
the controlling individual and CGT concession stakeholder tests
structuring issues and ordering of the concessions
identifing the controller of discretionary trusts.
This paper was also presented on 27 October 2006 at the Tax Intensive Seminar held in Victor Harbor, SA.