Starting and running your small business
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all assets attract capital gains tax. As a small business operator, you
most commonly make a capital gain or capital loss when you sell one of
the assets you use in your business, for example, your business premises
or goodwill. If you conduct your business through a company or trust,
you may make a capital gain or capital loss if you sell your shares in
the company or interest in the trust.
gains tax does not generally apply to depreciating assets you use only
in your business, for example, tools or motor vehicles. Gains from these
assets are included in your income and you can claim a deduction for
Capital gains tax affects
the amount of income tax you are liable to pay because you must include
any net capital gain you made in your assessable income.
net capital gain is the total of your capital gains for the year, less
any capital losses for the year or earlier years, and any relevant
Tax concessions for small business can reduce the tax you must pay on capital gains.
must keep records of any act, transaction, event or circumstance that
might reasonably be expected to be relevant to working out a capital
gain or capital loss. You must do this even if the capital gain or
capital loss hasn't yet happened.
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