The challenge
Liz and Shane decided it was time to retire. After the sale of two business assets they expect to receive net sale proceeds of $1.1m. One asset has a gross capital gain of $450,000 whereas the other asset a $70,000 capital loss. Their accountant has confirmed that their business meets the broad eligibility requirements to be eligible for the small business CGT concessions.
Our solution
We advised Liz and Shane that they were also eligible for the general 50 per cent discount on both business assets. As a result, they end up with a $190,000 net discounted capital gain to which they could apply one or more of the small business CGT concessions.
In addition, we recommended that Liz and Shane make use of the CGT Small Business Concession Contribution cap (a lifetime limit of $1,225,000). This enabled them to contribute the $1.1m net sale proceeds to super without exceeding their concessional or non-concessional caps.
The outcome
Today, Liz and Shane are enjoying the retirement lifestyle they always looked forward to. We continue to help them extend and protect their wealth for future generations.
This is a hypothetical example based on a real client experience. Names and details have been changed.
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