What is a capital gains tax event?
According to the Australian Tax Office: … “Capital gains tax (CGT) events are the different types of transactions or events that may result in a capital gain or capital loss. Many CGT events involve a CGT asset while other CGT events relate directly to capital receipts (capital proceeds). The most common CGT event happens when you dispose of an asset to someone else. For example, if you sell or give away an asset, including to a relative. Subdividing land does not result in a CGT event if you retain ownership of the subdivided blocks. Therefore, you do not make a capital gain or a capital loss at the time of the subdivision.” Where property is concerned, you will incur capital gains tax when: • a property you own is lost or destroyed (the destruction may be voluntary or involuntary) • you give a property away • you stop being an Australian resident • you enter into a conservation covenant, or • you sell a property for more than you paid. If you inherited a property before 20 Septembe
Capital gains tax (CGT) events are the different types of transactions or events that may result in a capital gain or capital loss. Many CGT events involve a CGT asset while other CGT events relate directly to capital receipts (capital proceeds). You need to know which type of CGT event applies in your situation because it affects how you calculate your capital gain or capital loss and when you include it in your net capital gain or net capital loss. There is a wide range of CGT events. Some happen often and affect many people while others are rare and affect only a few people. There is a table of CGT events A1 to L8 in Summary of capital gains tax events. The most common CGT event happens when you dispose of an asset to someone else – for example, if you sell or give it away, including to a relative. Note: If you are registered for GST, or required to be registered for GST, a GST liability may also arise when you dispose of a business asset. Subdividing land does not result in a CGT e
