Deceased Estates – Full capital gains tax exemption if dispose of the pre-CGT property within 2 years from date of death
Did you know of the capital gains tax exemption available for the disposal of pre-CGT properties (originally acquired by the deceased before 20 Sep 1985) within 2 years from the deceased date of death?
Does the pre-CGT property have to have been the main residence at any time?
No it is not necessary for the pre-CGT property to have been the main residence of the deceased just before they died.
The deceased could have used the pre-CGT property to earn income so this capital gains tax exemption can also apply to investment properties.
What do you mean by dispose of?
The Estate will need to have transferred out the property, either by selling to a 3rd party or transfers to the beneficiary (so they inherit as according to the will).
Further to this, if the beneficiary who inherits the property decides to sell the inherited pre-CGT property within 2 years, the capital gains tax on the disposal is also still fully exempt.
What do you mean by “settled”?
For this particular legislation for the capital gains exemption, the relevant date is the date the contract is fully settled and completed, which is the date the property transfer has been finalised and performed.
This is in contrast to the date of exchange of contracts which is normally relevant for the capital gains on the disposal of Real Estate assets, which is the date the contract is signed by the relevant parties.
If you have questions on any of the above issues raised, please do not hesitate to contact us. Read more Personal Tax articles.
T: 02 9984 7774
Martin van der Saag
T: 02 9984 7774
Choosing a financial planner is probably one of the most important financial decisions you will ever make…
…and if you make the wrong choice it can certainly be a costly mistake!
Knowing who to trust with your life savings can be overwhelming at the best of times, but what if we told you there was now an alternative to finding a financial planner?
An alternative that will save you time…
An alternative that will save you money…
…and an alternative that ensures you can continue your longstanding partnership with the one person you already trust with your financial affairs?
Advantages of using your accountant as your financial planner
If you were thinking of engaging the services of a separate financial planner in addition to your existing accountant…you might want to think twice before you do.
Recent changes in Australian law means you can now enjoy the cost-saving benefits of having the one trusted specialist provide you with all of your accounting and financial planning services.
Here are 5 compelling reasons why using your accountant as your financial planner might just be the smartest financial decision you’ve ever made.
1. Time-saving solutions
When you’re time poor, a financial planner who is also your accountant is much better placed to provide a time effective solution for all your financial planning and taxation requirements, especially if you have complex financial affairs or you need proactive advice on how your investment strategies might impact your tax position.
Having the one point of contact for both your financial planning needs and your accounting services ensures that every single aspect of your wealth management is viewed in context of the bigger picture, and nothing is overlooked.
And it helps you avoid the time delays from one advisor waiting to hear back from your other advisor .
2. Reduced administration fees
If decide to employ the services of a separate financial planner in addition to your accountant you will be paying two lots of fees to two separate advisors for overlapping areas of advice and double handling of information and administrative processes.
Doesn’t really make financial sense, does it?
But when you use the one trusted advisor as both your accountant and your financial planner, it will not only save you time…it will also halve your fees.
You won’t be frittering your hard-earned cash away with multiple advisor fees.
3. Tax-effective investment strategies
Financial planning is not just about investments and insurance…although many financial planners will tell you that’s the case.
Good financial planning is all about the bigger picture.
It’s about creating the right investment strategy for you. And an important part of creating the best investment strategy is ensuring that your investments are the most tax effective for your situation.
Because there’s absolutely no point to achieving a great rate of return on your investments…only to hand it all over the tax man!
4. Clarity and consistency of advice
When you use your accountant as your financial planner you ensure clarity and consistency and ensure that all aspects of your wealth management are being monitored and maximised.
And there’s no more worrying about intricate and complex information being inadvertently lost in translation.
5. Greater choice and transparency of investments
Many financial planners limit the range of life insurance or investment funds they offer you because they receive commission from selected financial products.
Your accountant is not allowed to receive commission or provide advice on specific products, so you can be assured that their advice is always neutral. They can also offer you a broader range and greater choice in investments, so you can make informed decisions, choosing exactly where you want to invest your money.
A financial planner who is also your accountant is not just a glorified insurance salesmen!
It really does make sense to use the one trusted advisor for all your financial needs
When it comes to your family’s financial security it really makes sense to use an experienced financial advisor you know and trust…
…a financial advisor who already has a deep understanding of your finances and a proven track record of wealth management.
Our accountants who have qualified as financial planners have their financial planning certification in addition to their accounting degrees and CPA qualifications…
…whereas traditional financial planners only hold their financial planning certification.
Our team at North Advisory can now look after every aspect of your financial security, including financial planning advice.
Our Accountants Private Advice is the future of financial planning.
Find out more. Read more Personal Wealth Management articles.