Our client, a farmland owner approached us for wealth management advisory services. The farmland owner recently retired has 2840 hectares of farmland and does farming with his wife, son and daughter in law. The farmland owner is 62 years of age while his wife is 60 years old.
The farmer has other assets including his residential property and $600,000 in shares generated from the estate of his wife’s father.
His residential property is free and clear without any encumbrances and interests by other parties and valued at $ 25,00,000.
The landowner entered into an agreement with his son and daughter in law that they will pay him and his wife $ 1,50000 annually during retirement. He and his wife each can contribute $ 200,000 as Non-Concessional Contributions, NCC or $ 600,000 using the bring-forward rule.
The landowner owned the land for more than 15 years, and the applicable capital gains tax, CGT concession can enable both husband and wife to contribute $ 10,00,000 each or else or up to $ 28,90,000 in case he sells or transfers the asset.