12 types of Capital Gains Tax events

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12 Types of capital gains tax events

Are you?
  • 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.
  1. 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.
  2. 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:
    • Disposals;
    • End of a CGT asset;
    • Shares;
    • Cessation of residency; and
    • Other CGT events.
  3. 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.
  4. 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.
  5. To access the full list of CGT events, click here.
  • The timing and method of calculation of a CGT event is important.
This article was published on 17/09/2013 and is current as at that date

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation


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