Farm Land prices are fetching record prices recently. Many farming asset holders have acquired land through succession or other forms of acquisition for a cost base which is significantly lower than the current values. In these instances there are often significant unrealised capital gains that can be triggered in the event of transfer or sale.
- Are you aware of the implications if this were to occur in your situation?
- What tax would be payable; $10,000, $50,000, $100,000, more?
- Does stamp duty apply on top of this and are there exemptions available?
- Under what conditions can stamp duty exemptions be applied?
- What methods are available to minimise or mitigate the tax implications?
- How will a change in Government affect this situation?
- Could I plan for this event to mitigate the risks of capital gains tax crystallising?
- What if I transfer? What if I sell?
- Do I properly understand our asset holding structure?
We work with many clients to plan for the future; the past is certain, the future is yet to be determined. Under current legislation there are concessions available to enable you to reposition your investments which will ultimately potentially save you thousands.
I work with our many farming asset holders to conduct a review on their farm land asset holding structures, helping them to understand what their position is and potential tax implications. Today it is generally a sure thing that there is an unrealised taxable capital gain, just how big is yours?
With the current land prices I am finding that there is a significant and increasing disparity between original cost bases and current values. What are you doing to understand this situation? Have you considered how what looks to be a looming changing in Government will impact you and potentially cost you thousands?
Our Asset Structure Review will addresses the following specific to your circumstances:
- Helping you to understand your structures and what they mean
- A comprehensive review of historical documentation
- General advice in relation to tax concessions
- Preparation of an unrealised capital gains tax position register
- Strategy towards minimizing tax on transfer or sale of assets
- Availability of stamp duty concessions and the requirements to qualify for these provisions
- Advice in relation to acceptable property valuation methodology
- Trusts, Estate Planning and Wills in relation to your assets
It's time to take charge and have a say in what happens from here.
As Murray Nankivell's Asset Structure Review specialist, you can send an email to joelt@murraynankivell.com.au or call on (08) 8765 7777 to arrange an initial no charge meeting to review your situation and see whether this Asset Structure Review is suitable for you.
About the Author - Joel Thomas
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Investngro Pty Ltd ABN 53 113 102 695 trading as Murray Nankivell Financial Planning, is an authorised representative of Count Financial Limited ABN 19 001 974 625 holder of Australian financial services licence number 227232 (“Count”). Count is owned by Count Limited ABN 111 26 990 832 of GPO Box 1453, Sydney NSW 2001. Count Limited is listed on the Australian Stock Exchange. Any taxation and accounting services are provided by Murray Nankivell and are not within the authority Count. The information on this web site is not financial product advice and is provided for information only.