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Tax for Australians for Dummies, 2014 - 15 Edition by Jimmy B. Prince

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Chapter 11

Catching Up on Capital Gains Tax

In This Chapter

arrow Examining three types of CGT assets

arrow Understanding how to calculate a capital gain

arrow Finding out the CGT requirements for moving your business premises to a SMSF

Y ou’ve just found out that the ‘worthless’ old painting you inherited from a distant relative is really a Renoir — and you can’t call Christie’s or Sotheby’s soon enough. As soon as the auction gavel falls, you’re going to be set for life. Right?

Well, probably, but unless you want to spend some time in the tax court, you’re best to make sure the Tax Office gets its share. Why? Because if you sell things like shares, real estate, works of art or other assets that you acquired after 19 September 1985, you may be liable to pay capital gains tax (CGT) on any capital gains you make on the sale (this date is when the CGT provisions started). Just to complicate things, the federal government tweaked the rules again in 1999. But don’t worry, in this chapter I explain how to calculate a capital gain or capital loss, and how capital gains are taxed under the old rules and new rules.

Looking at the Rules: CGT Assets

The CGT provisions are all about taxing gains you make on ...

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