Tax Fundamentals: Capital Gains and the Small Business CGT (and other) Concessions – 5 program webinar series

Program 1: Capital Gains Tax: The Basics

Capital gains tax has evolved into one of the more complicated areas of our tax system. Having a basic understanding of the fundamentals of this area of tax law is imperative before progressing to the more specialised topics that you will encounter in public practice. This session is designed to provide you with the foundations of what you need to know, including:

• What assets are exempt from CGT
• The more common CGT events experienced in practice
• Applying the CGT 50% discount, including how it applies to:
  • foreign residents
  • companies and trusts
• How CGT applies to shares and dividend reinvestments
• Selling an investment property:
  • what are the typical costs to include
  • is a capital works adjustment required?
• The market value substitution rule
• The use of capital losses
• Practical examples of calculating capital gains and losses in varying scenarios

Program 2: Capital Gains Tax and the Main Residence

As a general rule, your main residence is exempt from capital gains tax. However, there are numerous situations that can occur during the ownership period that can turn the exemption on its head. This session is designed to broaden your understanding of the main residence CGT rules, including:

• What are the factors that support a dwelling being a main residence?
• The CGT effect of:
  • renting out part of your home
  • moving out and renting out all of your home and choosing to continue treating it as your main residence
  • using your home to run a business
• Inheriting a dwelling that was the main residence of the deceased
• The 2 hectare rule
• The interaction of the main residence rule and foreign residents
• What if a change of residence results in you owning two properties at the same time?
• CGT and granny flat arrangements
• Worked examples of CGT calculations where residence also income producing

Program 3: Capital Gains Tax and Relationship Breakdowns

Unfortunately, it is a fact of life that some marriages and relationships will break down, resulting in assets being transferred between the parties. Whilst these transfers may trigger capital gains tax implications, there are rollover provisions that may apply depending on the circumstances. This session is designed to provide you with a basic understanding of the CGT implications of a relationship breakdown, including:

• When the CGT rollover provisions can apply
• What happens if a private or informal arrangement is reached between the parties
• How the market value rules can interact with property transfers resulting from a relationship breakdown
• What are the CGT effects on the transferor and transferee when the CGT rollover is applied?
• The CGT main residence exemption and the requirement to review the history of use of the property by both parties
• What if the asset is required to be transferred from an SMSF to another superannuation fund?
• What is the situation if the asset is transferred from a company or trust to one of the spouses?
• Practical examples

Program 4A: Small Business CGT Concessions: Generous in Discount but so are the Complexities (Part 1)

Some of the more generous concessions available to small business, and maybe the most complicated, are included in the CGT small business concessions. This session is designed to improve your understanding of these rules by providing an overview of the concessions, including:

• What are the basic eligibility requirements?
• What assets are included in the maximum net asset value test?
• What is an active asset?
• Explaining the terms:
• CGT concession stakeholder
• Significant individual
• Affiliate

Program 4B: Small Business CGT Concessions: Generous in Discount but so are the Complexities (Part 2)

Building upon the knowledge gained in session 4A, this session examines the learnings gained in various practical scenarios, with a spotlight on the following:

• What if the asset is a share in a company or an interest in a trust?
• How the concessions apply for partners in a partnership
• Tips and traps when applying the four concessions
• Practical examples

Program 5: Putting the Small Business Entity (SBE) Concessions to Good Use

The CGT small business concessions and the small business restructure rollover cover the CGT concessions for small business entities. However, there are numerous other concessions, that if eligible, can be put to good use by SBEs. This session explores those further available concessions (excluding CGT) and when it may be beneficial to apply them, including:

• What are the tests to be eligible for the SBE concessions?
• What does aggregated turnover include?
• What are the special rules for prepaid expenses?
• What are the simplified depreciation rules for SBEs?
• What are the company tax rate changes?
• How does the small business income tax offset work?
• What are the FBT exemptions for SBEs?
• How do the amendment periods change if you are an SBE?