Recently, we had a retired couple, Jack & Dianne, sell their commercial property. 

They sold this property for over 2 million dollars, a great result, certainly doing the best they can. Jack & Dianne bought this property more than 30 years ago for approximately $300k. The capital gain was more than $1.7 million. Potential capital gains tax of $400k.

Fortunately for them, we have known them for over 20 years.  Originally, the property was bought and used in their business before they retired and started using it for passive income.

Using a commercial property to operate their business…. We researched the small business capital gains tax exemptions to see if they apply to Jack & Dianne. 



We did the work, ensuring Jack & Dianne passed all steps.  We prepared a detailed tax advice letter.  The final result… was a capital gains tax amount of NIL.  Yes, they owned the property for 30 years and paid no capital gains tax.

If you do run your own business and are thinking of investing in a rental property, think about buying a commercial property to operate your business from. The capital gains tax savings could be huge.