While we calculate the CGT, we have to be carful that some of the capital gains are exempt and some of the capital losses must be ignored, it means you can not use them to reduce your capital gains.
ATO has listed following exemptions for capital gains or capital losses:
- Capital gain on main resident is exempt but there are exceptions.
- Personal Motor vehicle which is designed to carry a load of less than one tonne and fewer than nine passengers, motorcycle or similar vehicle
- Any assets acquired before 20 September 1985.
- Personal use items and some collectables acquired less than $10,000.
- Depreciating assets used solely for taxable purposes, and trading stock
- A decoration awarded for valour or brave conduct, unless you paid or exchanged property for it
- Any assets used solely to produce exempt income or some types of non-assessable non-exempt income
- winnings or losses from gambling, a game or a competition with prizes
- a CGT event happening to the segregated current pension asset of a complying super fund
- some payouts under a general insurance policy, life insurance policy or annuity instrument
- shares in a pooled development fund
- a tobacco industry exit grant under the program known as the Tobacco Growers Adjustment Assistance Programme.
- shares of certain profits, gains or losses arising from disposal of investments by certain venture capital entities
- a financial arrangement where gains and losses are calculated under the TOFA rules
- some types of testamentary gifts.
CGT Exemptions are not limited to above stated exemptions.
If you are not sure about your obligations then do not hesitate to contact us.
As a registered Tax Agent, we are assisting people maximise their tax refunds and explain which option best suits them.
For further assistance, please contact Taxplanners on 1300 000 TAX (1300 000 829), 03 9600 0143 (10 Lines).
You can also visit our office for assistance –
Melbourne CBD – Suite 411-413, Level 4, 343 Little Collins Street, Melbourne
Werribee Office – 88 Watton Street, Werribee, Contact – 03 901 MY TAX (03 9016 9829)