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INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 100 - A Guide to capital gains and losses  

Step 1 - Have you made a capital gain or a capital loss?  

SECTION 100-20  What events attract CGT?  

100-20(1)  

You can make a capital gain or loss only if a CGT event happens.

100-20(2)  

There are a wide range of CGT events. Some happen often and affect many different taxpayers. Others are rare and affect only a few.
Some examples of CGT events
SituationEventWhich CGT event?
You own shares you acquired on or after 20 September 1985You sell themCGT event A1
...........
You sell a businessYou agree with the purchaser not to operate a similar business in the same areaCGT event D1
...........
You are a lessorYou receive a payment for changing the leaseCGT event F5
...........
You own shares in a companyThe company makes a payment (not a dividend) to you as a shareholderCGT event G1

A summary of all the CGT events is in section 104-5.

Identifying the time of a CGT event

100-20(3)  

The specific time when a CGT event happens is important for various reasons: in particular, for working out whether a capital gain or loss from the event affects your income tax for the current or another income year.

If a CGT event involves a contract, the time of the event will often be when the contract is made, not when it is completed.

The time of each CGT event is explained early in the relevant section in Division 104.


 



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