Question 18 - Capital gains
Capital gains (Individual tax return instructions 2015)
Did taxpayer have a capital gains tax event during the year?
Taxpayer may have made a capital gain or capital loss if a capital gains tax (CGT) event happened in 2014-15.
Taxpayer may have also made a capital gain for 2014-15 if they were a beneficiary of, or had money invested in, a trust (including a managed investment fund) in 2014-15 and the trust made a capital gain during the year.
For most CGT events, taxpayer has made:
·a capital gain if the amount of money and property they received, or were entitled to receive, from the CGT event was more than the cost base of their asset; taxpayer may then have to pay tax on their capital gain
·a capital loss if the amount of money and property they received, or were entitled to receive, from the CGT event was less than the reduced cost base of their asset.
Taxpayer cannot deduct a capital loss from their income, but in most cases it can be used to reduce any capital gain they made in 2014-15.
The following publications may assist you in completing this question:
·Capital gains tax (CGT) schedule 2015 (NAT 3423)
·Guide to capital gains tax 2015 (NAT 4151)
·Employee share schemes - answers to frequently asked questions by employees (NAT 7366)
·Personal investors guide to capital gains tax 2015 (NAT 4152)
The above publications can be found in Other publications.
YOU NEED TO KNOW
CGT events and CGT assets
There is a wide range of CGT events. The most common CGT event happens when you sell or give away a CGT asset, such as:
·real estate, including the family home, a holiday home, investment property, hobby farm or vacant block of land
·units in a unit trust or managed investment fund
·forestry managed investment scheme interests (as a subsequent participant)
·collectables, for example, jewellery
·personal use assets
Examples of other CGT events are:
·an asset taxpayer owned was lost or destroyed
·taxpayer received an amount for entering into an agreement, for example, taxpayer agreed not to work in a particular industry for a set period of time
·taxpayer entered into a conservation covenant over land that they owned
·taxpayer received a non-assessable payment from a trust or company.
COMPLETING THIS QUESTION USING TAX ASSISTANT