|12 Types of capital gains tax events|
- A taxpayer holding a capital asset?
|At a glance:|
- The Tax Office has recently released a summary of capital gains tax events.
|You should: |
- Familiarise yourself with the capital gains tax events that may affect you.
- Contact us if you require any clarification or advice.
- The Tax Office has published a list comprising of all potential capital gains tax (CGT) events, including the timing of the event and the method of calculating the capital gain or loss.
- There are a variety of CGT events that range from frequent occurrence to rare occasions and according to the Tax Office the CGT events are grouped into a number of categories, including:
- End of a CGT asset;
- Cessation of residency; and
- Other CGT events.
- The Tax Office has identified disposals, CGT event A1, as the most common CGT event to occur, the act of selling or giving away a capital asset.
- Other specific events that may occur include:
- Event B1 – Use and enjoyment before title passes for hire purchase and similar agreements;
- Event C1 – Loss or destruction of a CGT asset;
- Event C2 – Cancellation, surrender and similar endings;
- Event D1 – Creating contractual or other rights; and
- Event I1 – Where an individual or company stops being an Australian resident.
- To access the full list of CGT events, click here.
- The timing and method of calculation of a CGT event is important.