Capital Gains Tax Accountant | Fremantle Nedlands Perth
Cryptocurrencies
Cryptocurrency trading and investment have become popular and the ATO has focused on tax compliance of cryptocurrencies.
The tax treatment of cryptocurrency depends on whether it is held for investment purposes, trading stock purposes, used to pay for business expenses or wages, or an isolated profit-making transaction. In most cases, the profit from the sale of cryptocurrencies will be assessed as capital gains or losses.
How we can help
At Ezzura Tax Advisory, we can assist you in:
- assessing the tax treatment of your cryptocurrency transactions
- calculate tax liability on cryptocurrency transactions
Capital gains tax and residency
Foreign and temporary residents are taxed on Australian taxable properties. Taxable Australian properties means real property located in Australia and assets that are used to operate a business through a permanent establishment in Australia. Real property includes an indirect Australian real property interest of a 10% or greater interest in a company or trust that owns greater than 50% of the total market value of its assets directly or indirectly in Australian real property.
Non-residents of Australia no longer have access to the 50% CGT discount for assets acquired after 8 May 2012. For the assets acquired on or before 8 May 2012, non-residents may apply part of the CGT discount.
Non-residents also do not qualify for the main residence exemption for property sold after 30 June 2020 even though they were Australian tax residents for part of the ownership period. A non-resident can access the main residence exemption only if they satisfy the life events test and have ceased to be an Australian tax resident for 6 years or less. Life events tests are relationship breakdown, a death in the family or one of your family members has a terminal medical condition.
How can we assist in determining your capital gain tax liability correctly?
At Ezzura Tax Advisory, our tax specialist can assist with:
- review your tax residency
- calculate your capital gain tax liability taking into account your tax residency
- consultation on capital gain tax
- tax planning for capital gains tax
Main residence exemption
Capital gain on a property that has been used as a principal residence can be reduced or eliminated by the principal residence exemption.
Generally, only a partial exemption can be claimed when the main residence has been used partly for income producing. However, there are special rules that can extend the concession such as the absence rule, the change of main residence rule and the rule that provides a concession for a dwelling that is built, repaired or renovated.
How can we assist in maximising the benefits of CGT exemptions?
At Ezzura Tax Advisory, our tax specialist has the expertise to resolve the intricacies of capital gains tax legislation and maximise the exemption or concessions to provide the optimal tax solution. Failing to apply an exemption or concessions can result in a significant capital gains tax liability.
Land subdivision
The growth in the property market has led to an increase in land subdivisions. People often subdivide the land of their house and believe that the sale of the subdivided land will be exempt from CGT because it is part of their principal residence.
Land subdivision can be treated either as a mere realisation of an asset or a business venture. If the land subdivision is a mere realisation of an asset, then it will be reported as a capital gain and subject to the 50% general discount if the land has been held for at least 12 months. If the land subdivision is treated in the course of furtherance of an enterprise, the sale profit of the subdivided land will be taxed as business income with no access to the 50% general discount.
At Ezzura Tax Advisory, our tax specialist can help you navigate the complexities of tax and GST treatment of a land subdivision. The incorrect tax or GST treatment of a land subdivision can be costly. It is also one of the focus areas of the ATO’s audit.
