CGT Articles

CGT event C1   What is CGT Event C1? CGT Event C1 is where a taxpayer owns a CGT asset which becomes lost or destroyed. The rules governing CGT Event C1 are contained in section 104-20 of the Income Tax Assessment Act 1997 (Cth) (‘ITAA’). When does CGT Event C1...

CGT event B1 What is CGT event B1? CGT event B1 involves a situation where a taxpayer enters into an agreement with another entity under which: the right to use and enjoyment of a CGT asset the taxpayer owns passes to the other entity; and title in the asset will or...

CGT Event H2   CGT Event H2 is where an act, transaction or event occurs in relation to a CGT asset owned by a taxpayer and that act, transaction or event does not result in an adjustment being made to the asset’s cost base or reduced cost base. The rules dealing...

CGT Event E1 What is CGT Event E1? CGT Event E1 deals with a situation where a taxpayer creates a trust over a CGT asset by way of declaration or settlement. The rules dealing with CGT Event E1 are contained in section 104-55 of the Income Tax Assessment Act 1997...

CGT Event K7   What is CGT Event K7? CGT Event K7 is where a balancing adjustment event occurs for a depreciating asset held by a taxpayer that was at some time used (or installed ready for use) for a non-taxable purpose, or a purpose contemplated under section...

CGT Event J2 - J5 - J6      CGT events J2, J5 and J6 are invoked in situations where a taxpayer utilises the small business CGT roll-over concession and a certain specific circumstance occurs concerning the taxpayer decision-making regarding the...

CGT Event G3   What is CGT Event G3? CGT Event G3 is relevant where an appointed liquidator or administrator makes a declaration that the shareholders of a company, or shareholders of a relevant class of shares, have no likelihood of receiving any further distribution...

CGT Rollover Relief – Relationship Breakdown   A taxpayer is subject to capital gains tax where a CGT event happens to a CGT asset they own.   When it comes to relationship breakdowns, one would expect a number of potential taxing point under the CGT regime as...

CGT event K4  CGT event K4 addresses a situation where a taxpayer that holds a CGT asset on capital account starts to instead hold that asset as trading stock. This is most common in a property development context where a taxpayer that owns property for another...