Seven assets that may be subject to CGT

Generally, when you dispose of an asset — whether by selling, transferring or gifting it — a capital gains tax (CGT) event occurs. This may result in a capital gain or a capital loss, which must be reported in your income tax return.

 

Assets acquired before 20 September 1985 are generally exempt from CGT. In most cases, cars and motorbikes are also exempt, while the family home may qualify for the main residence exemption, subject to certain conditions.

 Assets that may be subject to CGT include:

 * Property purchased after 20 September 1985 (excluding your main residence in most cases)

* Shares, units and similar investments

* Crypto assets

* Collectables acquired for more than $500

* Foreign currency (in certain circumstances)

* Intangible assets, including leases, goodwill, licences and contractual rights

* Personal-use assets acquired for more than $10,000

 Capital losses on personal-use assets are disregarded and cannot be used to offset capital gains on other assets.

 This is general information only. CGT outcomes depend on your specific circumstances, so please speak to an accountant.

 

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