Reporting Asset Disposals for Capital Gains Tax

As the ATO’s data-matching capabilities are increase they are paying close attention to capital gains made on shares, property, and cryptocurrency.

Please let your accountant know when you dispose of an asset, which can include an asset’s sale, loss, or destruction.

The type of capital gains tax (CGT) event that applies can affect:
– how a capital gain or loss is calculated
– when it is included in a net capital gain or loss.

Good records will help us work out a capital gain or loss correctly when you dispose of an asset. You generally need to keep records
relating to any CGT event, including asset disposals, for at least five years after the year in which the event occurred.

You should also keep records for any net capital losses, which they may be able to offset against capital gains in a later year. Once a loss is offset against a capital gain, you should keep records of the CGT event that resulted in the loss for:
– two years (for individuals and small businesses)
– four years (for other taxpayers).

For more on Capital Gains Tax please give us a call to discuss your individual situation further, or visit https://www.ato.gov.au/general/capital-gains-tax/ for more.