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Asset acquired before 20 September 1985
If a CGT asset - including a share of a jointly owned asset - was transferred to you because of the breakdown of your marriage and it was acquired before 20 September 1985 by:
- your spouse
- a company or
- a trustee of a trust
you are taken to have acquired the asset before that date and any capital gain or loss is disregarded.
However, if you make a major capital improvement to that asset after 20 September 1985, part of any capital gain you make when a CGT event happens to the asset could be subject to capital gains tax. See the section on Capital improvements to assets acquired before 20 September 1985.
Asset acquired on or after 20 September 1985
If you receive the CGT asset - or a share of a jointly owned asset - and there is a marriage breakdown roll-over, you are taken to have acquired the asset at the time your spouse, the company or the trustee disposed of the asset to you. To calculate a capital gain or loss when a later CGT event happens, your cost base or reduced cost base for the asset is taken to be an amount equal to the cost base or reduced cost base of your spouse, the company or trustee at the time of the transfer.
Costs of transfer incurred by the transferor - such as conveyancing fees and stamp duty - are included in the cost base.
In calculating your capital gain, if the sum of your period of ownership of the asset and the period of ownership of your spouse, the company or the trustee is at least 12 months, the cost base may be indexed for inflation provided you acquired the asset before 11.45 am on 21 September 1999. If you acquired the asset after that time, its cost base is not indexed for inflation but you may qualify or the CGT discount on your capital gain. If the transfer of the asset occurred before 1 July 1998, only your period of ownership determines whether indexation applies.
If you receive your spouse's share of property that you jointly owned, you are taken to have acquired that share of the property at the time it was transferred.
Collectables or personal use assets remain collectables or personal use assets when they are transferred between the parties in a marriage breakdown roll-over. For information regarding collectables and personal use assets, see What are CGT assets?.
Last modified: 18 Sep 2009QC 18323