Capital Gains Tax

A capital gain or capital loss on an asset is the difference between what it cost us and what you receive when we dispose of it.

We pay tax on your capital gains. It forms part of our income tax and is not considered a separate tax – though it’s referred to as capital gains tax (CGT).

If we make a capital loss, we can’t claim it against income but we can use it to reduce a capital gain in the same income year. And if our capital losses exceed our capital gains in an income year, we can generally carry the loss forward and deduct it against capital gains in future years.

All assets we’ve acquired since tax on capital gains started (on 20 September 1985) are subject to CGT unless specifically excluded.

Most personal assets are exempt from CGT, including our home, car, and most personal use assets, such as furniture. CGT also doesn’t apply to depreciating assets used solely for taxable purposes, such as business equipment or fittings in a rental property.

If we’re an Australian resident, CGT applies to our assets anywhere in the world. Foreign residents make a capital gain or capital loss if a CGT event happens to an asset that is ‘taxable Australian property’.

When you sell or else dispose of an asset it’s called a CGT event. This is the point at which you create a capital gain or capital loss. There are additional CGT events, such as when a managed fund or other trust distributes a capital gain to you.

It’s important to set up the timing of a CGT event because it tells you in which income year to report your capital gain or capital loss, and may affect how you calculate your tax liability.

If you dispose of a CGT asset, the CGT event frequently happens when you enter into the contract for disposal. (In the case of real estate, for example, the CGT event generally occurs when you enter into the contract – that is, the date on the contract, not when you settle.) If there is no contract, the CGT event usually happens when you stop being the asset’s owner.

If your CGT asset is lost or destroyed, the CGT event happens when you first receive reward for the loss or destruction. If you don’t receive any reward, the CGT event happens when the loss is discovered or the damage occurred.

When some CGT events occur, such as exchanging an asset for a replacement asset, the law allows you to defer or roll over any capital gain you make until another CGT event (such as selling the replacement asset).

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

Capital Gain Tax

You may influence a capital gain or capital loss when you to offer (or generally stop to claim) an investment property that you acquired after 19 September 1985. On account of the deal or other transfer of land, the time of event is typically when you go into the agreement (for the most part the date on the agreement), not when you settle. On the off chance that there is no agreement, the occasion happens when the difference in possession happens.

The way that an agreement might be liable to a condition, for example, back endorsement, for the most part does not influence this date. You can likewise make a capital pick up or capital misfortune from certain capital changes made after 19 September 1985 when you offer or generally stop to possess a property you obtained before that date. You will make a capital pick up from the offer of your investment property to the degree that the capital continues you receive are more than the cost base of the property.

You will make a capital misfortune to the degree that the property’s diminished cost base surpasses those capital continues. If you are a co-proprietor of a venture property, you will make a capital pick up or misfortune as per your enthusiasm for the property. The cost base and diminished cost base of a property incorporates the sum you paid for it together with certain coincidental expenses related with getting, holding and discarding it (for instance, lawful charges, stamp obligation and land operator’s bonuses). Certain sums that you have deducted or which you can deduct are prohibited from the property’s cost base or lessened cost base. For instance, see Cost base changes for capital works findings.

Your capital gain or capital misfortune might be neglected if a rollover applies, for instance, if your property was wrecked or mandatorily obtained or you exchanged it to your previous companion under a court arrange following the breakdown of your marriage. On the off chance that you were an occupant of Norfolk Island on 23 October 2015 you can neglect any capital pick up or misfortune made on an investment property situated on Norfolk Island that you held around then. CGT may however apply to investment properties situated on the Australian territory or somewhere else on the planet. CGT may likewise apply to any investment properties acquired on or after 24 October 2015.

If you need any more information  to Start Online Income Tax Return, or want to know about myTax 2018, myGov 2018, Tax Return 2018 Please contact our professional and experienced accountants at TAX REFUND ON SPOT on the off chance that you have any questions, please don’t hesitate to contact our office on 1300 768 284 or email us at enquiry@taxrefundonspot.com.au or Fill your details online at www.taxrefundonspot.com.au

Quick Tax Saving Tips 2017

Your personal tax return

  1. Prepay Tax deductible expenses: You can claim deduction for prepaid expenses – which belong to next year but you paid before July 2017. E.g  Income protection insurance and interest on loans
  2. Delay interest income: you can delay maturity of Term deposits so that tax is deferred to next financial year
  3. Repairs for rental property: If you plan to do repairs in rental property, then do before 30 June 2017 so that you can claim in 2017 tax return
  4. If income above threshold, then Buy health insurance : This is to avoid Medicare Levy Surcharge. Remember that if you hold this for part of year, then you will get exemption for part of year only

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au

Records You Need to Keep (Tax Office Requirement)

During the financial year you’ll receive documents that are important for doing your tax, such as payment summaries, receipts, invoices and contracts.

Generally, you need to keep these for five years from when you lodge your tax return in case we ask you to substantiate your claims.

Records you need to keep include:

  • payment summaries from payers, including your employer and the Department of Human Services
  • statements from your bank and other financial institution showing the interest you’ve earned
  • dividend statements from companies
  • summaries from managed investment funds
  • receipts or invoices for equipment or asset purchases and sales
  • receipts or invoices for expense claims and repairs
  • contracts
  • tenant and rental records.

If your total claim for work-related expenses is more than $300, you must have written evidence to prove your claims.

If you acquire a capital asset – such as an investment property, shares or managed fund investment – start keeping records immediately because you may have to pay capital gains tax if you sell the asset in the future. Keeping records from the start will ensure you don’t pay more tax than necessary.

Your documentation must be in English, unless you incurred the expense outside Australia.

For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au