Many business owners sell everything at once when they exit their business.
However, that may not always be the most beneficial strategy.
In some circumstances, holding onto a business property for a little longer could create access to the valuable 15-Year CGT Exemption.
Why Timing Can Matter
If a business owner is approaching the 15-year ownership requirement, delaying the sale of a qualifying property may:
- eliminate capital gains tax on that asset
- allow significantly larger contributions to super
- improve overall retirement outcomes.
The strategy won’t suit everyone, but for eligible business owners it can produce substantial long-term benefits.
Before You Sell
Every business sale is different.
Before signing contracts, it’s worth reviewing:
- which assets are being sold
- whether they all need to be sold at the same time
- whether ownership periods may qualify for additional concessions.
Careful planning before a sale often provides opportunities that simply aren’t available afterwards.
Don’t Let Timing Cost You Valuable Tax Concessions
The difference of a few months could determine whether you qualify for one of the most valuable small business CGT concessions available.
At Forman Financial Services, we work alongside your accountant to review your business sale strategy before contracts are signed. By planning ahead, you may be able to reduce tax, maximise your superannuation contributions and achieve a stronger retirement outcome.
If you’re considering selling your business, contact us before making any final decisions. The right advice at the right time can make a significant difference.
Contact Forman Financial Services here
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.