Client Problem
A client that had sold an investment property that netted them a Capital Gain in excess of $1.6 million approached business accounting Concord firm, Gotsis Rubic & Barbariol. They were enquiring as to whether there are provisions in the tax laws that they could take advantage of in order to reduce their tax liability to Capital Gain.

Tax Effective Recommendations

Once we had completed a thorough examination of the history of the property that had been sold, including its usage during the years they owned it and other pertinent factors, our clients were stunned when we gave them the results that would effectively reduce their Capital Gains Tax to zero.

• The first thing that helped our clients was that being individuals and having had ownership of the property for more than a year they were entitled to a 50% concession on the Capital Gain.
• The second thing was the remaining 50% concession on the balance, as our clients met the “active asset” test.
• And finally, our clients had no tax liability of any kind on the Capital Gain as they were entitled to take advantage of the “used for retirement” provision.

Real Tax Benefits
No taxes were due and payable by our clients on a Capital Gain of more than $1.6M. What surprised our clients the most was that, as they said, there were no tax schemes, no complex arrangements, etc. To put it simply, the appropriate tax recommendation given by tax accountants Concord, Gotsis Rubic & Barbariol, allowed them to take advantage of the tax law provisions and the Small Business Concessions.