Asset disposal closing business

[#1]

Hi,

I m a sole trader and own a caravan under my business name. I m closing my business and would like to give the caravan to a relative. I have claimed GST credits when I puschased the caravan a year ago. Will I be liable to any GST for this donation?

Thank you

NM

[#2 · Accepted solution]

Hi @nicolas974

Welcome to the community.

What you are describing is essentially GST and the disposal of capital assets. Refer to the link I have included and it should provide the answer you need for when you sell, transfer or otherwise dispose of a capital asset.

Kind regards

MarkA

[#3]

Thank you MarkA. That s great. I have read through and understand that this will be treated as a taxable sale. However what about the market value? What if I want to sell this asset to a family memmber a very low price say $100 plus GST but the market value is $30000 for argument sake. Should I report the GST for a $100 taxable sale to a family member or would the ATO calculate the market value of the asset automatically? Thanks.
Nm