When investing in assets, you often need to acquire them quickly so you can capitalise on market conditions and potential gains. Unfortunately, due to the necessity to acquire these assets quickly, they are often acquired in inefficient entity structures which can have large tax consequences.
Continue reading to find out why you should meet with an Accountant at Crest Accountants to discuss.
Tax Rollover Provisions for Cryptocurrency
Restructuring of assets can often be costly exercise due to Capital Gains Tax (“CGT”) implications, Stamp Duty implications and for commercial reasons however, depending on the underlying facts of the assets, business and operation, there are sometimes tax rollover provisions and stamp duty concessions that can make the restructure cost-effective, save you lots of tax and protect your assets.
The tax rollover provisions are very complex and requires careful analysis and advice to ensure that they can apply to your position. The result of not getting the appropriate advice could cost you tax based on your marginal tax rates upon transfer. When considering the tax benefits of having your crypto assets in a company opposed to holding them individually, the tax saving could be the difference of 47% and 25%. If you have crypto profit for the year of $100,000, this equates to a tax saving of $22,000.
How Your Crypto Tax Accountant Can Help?
The Crest Accountants team can review your position and provide commentary and advice on how these rollover provisions may be applied to you.
Contact Crest Accountants to gain peace of mind today.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice.