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, $1,000,000, or 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.
We 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 we 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?
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 minimising 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
Disclaimer: This content provides general information only, current at the time of production. Any advice in it has been prepared without taking into account your personal circumstances. You should seek professional advice before acting on any material.