The 328-G small business rollover is a useful tax concession for restructured small businesses. It commenced on 1 July 2016 and allows a company to restructure assets without depreciation. It also requires that a transfer of assets be a genuine business restructure. This means that it cannot be a hidden sale or an artificial restructure made for tax purposes. However, it can be used to restructure assets that are subject to capital gains tax.
The 328-G small business rollover can be beneficial for some businesses. In the case of a trust, it is possible to restructure shares from an individual shareholder to a related discretionary trust shareholder. Similarly, the small business restructure rollover can apply to larger corporations. This means that a business that is part of a holding company can convert its shares to a stock portfolio of a different holding company. The tax benefits of this type of tax relief are not limited to the same types of business.
The 328-G small business rollover is only available for businesses that meet the criteria of a small business entity. In some cases, the small business rollover will apply to the assets of an existing holding company. Typically, this is the case for companies that are not affiliated with other organizations. These companies are not required to have any employees and can be owned by anyone. If a holding company is used, it may also be used as a vehicle for the restructured small business rollover.
Another type of 328-G small business rollover is a transfer of a trust into a company. While this type of transfer is not common, it can provide significant advantages. The key is to ensure that the restructured business is a genuine restructure of an ongoing business. The ATO is very strict on this issue. It is best to speak with an accountant before attempting to do so.
The 328-G small business rollover relief is an important tax shelter for small businesses. It is an exception to the rule that prohibits certain types of restructured shares. The restructured shareholding must be a subsidiary of an entity. As such, if a trust is transferred to a small business, it must be incorporated. This is known as a “rollover.”
The 328-G small business rollover does not allow for the transfer of an SBE’s assets to a new company. It is a restrictive tax provision that does not allow a small business to restructure. In addition, the restructured entity must be in a state of reorganization. It must be in the process of reorganizing its assets. Upon completing the restructuring, the company must then be reorganized and sell its assets to a third party.