This month we have prepared two articles that cover current issues we believe are relevant to SME advisors.
The first article looks at calculating the tax exemption for self-managed superannuation funds which are wholly or partly in pension phase.
The second article considers the CGT main residence exemption and why the ATO have begun to focus more heavily on this area.
Segregating (or not segregating) particular assets to support a pension and maximising the tax exempt income in the fund is a key planning tool for SMSFs. Are your clients’ SMSF tax exemptions being calculated in accordance with the recent ATO guidance?
Often, the ability to access the CGT main residence exemption is treated as a given when a person is selling their home. However, recent cases and ATO audits illustrate that the Commissioner can and will deny the main residence exemption where taxpayers cannot provide sufficient evidence to show that they lived in their home for the entire period claimed.