No adjusted gain or loss is included for AMT purposes for the sale of business assets
The result After just two years of ownership, business assets
would attract a 10 per cent effective tax rate on disposal.
Forthcoming changes to capital gains tax legislation means that individuals looking to realise the value of their business assets
may soon be able to benefit from lower CGT rates, according to KPMG in Birmingham.
The target corporation had sold its trucking business assets
and invested the proceeds of the sale in tax-exempt bonds.
But there are two sets of taper relief, and the gain tapers away much more quickly for business assets
than for assets seen as passive investments.
The Act also eliminated the need for a shareholder to have at least a five per cent shareholding in a private company to qualify for the business asset
The interest held by the controlling corporation in the controlled corporation does not qualify as a USRPI or as a trade or business asset
Net proceeds from Graco's investment in the Liquid Finishing business assets
and the sale transaction are expected to be approximately USD 570m, reflecting the USD 590m purchase price adjusted for estimated cash balances, less transaction fees and estimated tax expenses related to the sale, and cash dividends of approximately USD 30m expected to be received in the first quarter.
25 percent of taxable estates, and business assets
accounted for fewer than 14 percent during 2009, according to a Congressional Research Service analysis of the data.
When taper relief was available pre-2008, it reduced the effective rate of CGT on business assets
(for example, shares in a private trading company) from 40% to 10% if it was held for two years.
ANY increase in capital gains tax (CGT) for business assets
could have a damaging effect on family-owned firms and their ability to grow and be successful, according to the Institute for Family Business.
a major Japanese printer maker, has agreed to transfer some of its business assets
for small- and medium-sized thin-film transistor liquid crystal displays to Sony Corp.