Personal Use Assets and CGT

CGT assets are personal use assets rather than collectables. These types of assets are used or kept for personal use or enjoyment. You need to see that personal use assets have value for $10,000 or less for CGT purposes.

Personal use assets include:

  • boats
  • furniture
  • electrical goods
  • household items.

A personal use asset includes:

  • An option or a personal use asset or right
  • a debt come from

A CGT event for your personal use or for enjoyment, You are doing other things rather than gaining or producing your assessable income or carrying on a business like making private loan to a taxpayer’s family member or friend

Personal use assets do not contain taxpayers main residence and car or motorcycle.

If you dispose of personal use assets and that would be sold, you will get exemption only if you get $10,000 or less.

All capital losses are not considered on your personal use assets. This means you can not use capital losses on personal used assets to reduce your liability.

Depreciating assets

CGT doesn’t apply to most depreciating assets like business equipment or items in a rental property for taxable purposes. 

Gains or losses made on assessable income or claimed as deductions. However, if you have depreciating assets for private purposes, CGT may apply in this case.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

CGT Assets and Exemptions

If you buy any assets before 20 September 1985, Tax payer don’t need to pay CGT on assets. However, If you buy or sell any property or dispose the assets, CGT will applies to:

  • real estate or property
  • shares, units and similar investments
  • Cryptocurrency or other digital currency
  • leases, goodwill, licences, foreign currency, contractual rights, and major capital improvements made to land or pre-CGT assets
  • collectables and personal use assets above a certain value 

Some assets are exempt from CGT, such as:

  • your main residence with some exemptions
  • a car or motorcycle
  • depreciating assets  which used solely for taxable purposes like business equipment or fitting in rental property
  • any asset if you buy or sell  before 20 September 1985.

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

Exemptions CGT 2020

Some capital gains are exempt that you don’t need to include in your assessable income. Also, if you made losses, you can not use as offsets a capital gain to reduce your assessable income.

Exemptions include capital gains or losses for:

  • Your main residence with some exceptions
  • your car , Car will define as motor vehicle which carry a load of less than one tonne and nine passenger or less to carry
  • Personal use items who have value for less than $10,000
  • Collectables who have value for $500 or less
  • Depriciating assets used for taxable purposes
  • If you buy property before 20 September 1985 which is called ‘Pre-CGT assets’
  • Assets that produce exempt income or some types of non-assessable non-exempt income
  • If you get injured at your workplace and get compensation or damaged received for any occupation
  • Winning or losses from gambling or game
  • You get paid back or any payment of your expenses under following scheme like

Unlawful Termination Assistance Scheme

Alternative Dispute Resolution Assistance Scheme

M4/M5 Cashback Scheme

    • a scheme established by an Australian Government agency, a local government body or foreign government agency under an act or other legislative instrument, In this description expenses does not include loss, destruction or transfer of an asset
  • the transfer of a super interest in one small super fund 
  • Have relation with superannuation agreement
  • A CGT event happened after CGT event
  • Some payments happened with a general insurance policy, life insurance policy or annuity instrument
  • If you have shares in poll development fund
  • Shares of certain profits, gains or losses from disposal of investments by capital entities
  • Some type of gifts like will

For more information on online tax return 2020, Tax Return 2020, myGov 2020, myTax 2020 or any other tax related matter, please call our professional accountant on 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au