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Flashcards in Week 8: CGT Deck (16)
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1

What does CGT events trigger?

Capital gains and capital losses

2

What is a CGT Asset (s108-5)

Any kind of property

A legal or equitable right that is not property

3

What are 4 examples of CGT assets?

Land
Shares
Options
Goodwill

4

What is the difference between collectables and Personal Use Asset?

Collectable- personal use/enjoyment i.e. artwork, jewellery

PUA = CGT asset except collectable, NOT including land/buildings: includes house, boat, caravan

5

Capital losses from collectables can only be applied _________

against capital gains from collectables

6

When are capital gains and capital losses disregarded for collectables?

if collectables acquired for $500 or less

7

How are capital losses treated for PUA?

Capital losses disregarded

8

When are capital gains disregarded for PUA?

acquired for $10,000 or less

9

What is CGT event A1?

where taxpayer 'disposes' of a 'CGT asset'

10

How to calculate capital gain?

Capital proceeds - asset's cost base

11

How to calculate capital loss?

Assets reduced cost base - capital proceeds

12

What element is NOT part of the reduced cost base?

3rd element: cost of owning the asset

13

Net capital loss _____ be claimed as a deduction

cannot

14

What can you do with net capital loss?

Can be carried forward to offset against capital gains in future years

15

What is CGT event A1?

Arises if whole or part of a CGT asset is lost or destroyed

16

What is CGT event D1?

Arises if a contractual right or some other legal or equitable right is created in another entity (eg restrictive covenants or exclusive trade ties)