Tax Essay Example | Topics and Well Written Essays - 1000 words

Tax - Essay Exampleng that al intimately assets are task free and if ones gains in a year become little than his or her valuate-free allowance, the person is not required to stipend the capital gains tax. The paper analyzes aspects of the capital gains tax based on Susans case.Susans mode of shares government activity will determine whether she will pay the capital gains tax or not. If she can manage to evade the tax, it will be for the good of the company. at that place are instances that one can dispose of assets in a tax free way. Disposing assets can be done through selling it, giving the asset away as a gift, swapping the asset for other one and getting compensation for the asset may be when it gets destroyed or lost. It is well record that it could not be possible for transferring the shares to her son. This is because there were strains between her son and her. Similarly, the son did not have strong funds (Cordes 2005, p.5).These two instances make it difficult for Su san to dispose the shares with immediate effect. This is because she feels the ownership of the company should remain in the family. The only available way of disposing the shares immediately was selling the shares to an investor. It is well recorded that she had been approached by an investor. If she decides to sell the shares at this time she will have to pay capital gains tax (Thomas 2004, p.10). This is because sale of shares is in the docket of disposal way that is liable of being paid the capital gains tax. The best time for Susan to dispose the shares is not yet and the best person to dispose to is her son since the company will remain fully owned by the family and the disposal will take place tax free.Sale of assets like shares and real estate is the most common manner in which an individual capital loss or capital gain. The capital gains tax is also applicable to the intangible assets like business goodwill. Disposal of shares at a later image can be advantageous than sel ling them now. According to the 2014