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ATO issues warning after ‘unprecedented’ spike in impersonation scams
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FBT Exemption for Various Work Vehicles
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Australia - facts & figures March 2019
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Articles
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ATO reports on key contraventions for 2016-17
ATO, mid-tiers warn on common expenses myths
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Higher instant asset write-off threshold for small business extended
Australian population figures
New data points to spiralling retirement costs
Personal insolvency numbers spike across Australia
ATO cracking down on taxable fringe benefits
Intangible capital improvements made to a pre-CGT asset
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Federal Budget - 2017-18 - Overview
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Federal Budget - 2017-18 - Budget documents
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ATO finalises guidance for capped defined income streams
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Resources on our site to help you and your family.
ATO defends approach to SG compliance
Essential steps for SMSF clients before 30 June
New tax incentives for early stage investors
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ATO on 'aggressive' debt recovery hunt
More ATO downtime looms ahead of tax time
Tax debt release applications refused
Troublesome tax system overhaul picks up speed
Government to ‘put to bed’ uncertainties with TRIS
Travel expense and transport of bulky tools claim denied
New law sheds light on global tax issues
Report tips housing price spikes to wipe out super savings
Intangible capital improvements made to a pre-CGT asset

The Australian Taxation Office has issued an opinion regarding “parts” of an asset which many advisers consider controversial. 



       


 


It provides that for the purposes of the “separate asset” rules, some intangible capital improvements can be considered separate capital gains tax (CGT) assets from the pre-CGT asset to which the improvements are made.  This applies if the improvement cost base is more than the improvement threshold for the income year when CGT event happened, and it is more than 5% of the capital proceeds from the event.


This can result in part of the sale of pre CGT asset being fully taxable (with no 50% discount).  Hence, extra care is required when selling.


An example could be the sale under a single contract of an operating hotel where the freehold was acquired prior to 1985, but (arguably) the goodwill is generated after.


 


 


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10th-June-2017
 

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