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12 Types of capital gains tax events
| Are you? |
- A taxpayer holding a capital asset?
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| At a glance: |
- The Tax Office has recently released a summary of capital gains tax events.
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| You should: |
- Familiarise yourself with the capital gains tax events that may affect you.
- Contact us if you require any clarification or advice.
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- 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:
- Disposals;
- End of a CGT asset;
- Shares;
- 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.
| Remember: |
- The timing and method of calculation of a CGT event is important.
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