Tuesday, February 17, 2015

Division 152 concessions and superannuation contributions

Given the number of changes to the small business concessions since their introduction back in 1997, it is understandable that many clients and their advisers lose track of the exact way in which the provisions work.

Last week, we were reminded when assisting another adviser about one critical aspect of the rules, namely that in many instances it is possible for taxpayers to delay a decision on whether to roll a capital gain over into a new asset, pay the tax, or make a contribution into superannuation for at least two years after the date of sale.  Indeed in many cases the deferral opportunity is closer to three years.

Obviously (as with most aspects of the small business concessions), care needs to be taken to ensure this planning opportunity is in fact available, however assuming the basic conditions are otherwise satisfied, the additional two to three year window is one that we are seeing regularly accessed.

Until next week. 

Image credit: Ken Teegardin cc