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If you and your friends want to contribute current individual businesses into a new company and in exchange for the shares in the new company, the key issue is the value that is placed on each business at the time of contribution into the new company.
If your current partnership has "goodwill", then be careful about CGT implications for the transfer of goodwill from your partnership business to the new company If there is goodwill involved, the tax implications will depend heavily on the value that is attached to the goodwill.
You and your wife may make a capital gain on the transfer, the deemded consideration would be based on the market value of the assets at the time of transfer. You need to get professional advice in relation to whether specific rollover provisions that can apply when CGT assets (ie, goodwill) are transferred to the new company. |
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