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  • CGT records you need to keep

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    You must keep records of everything that may be relevant to working out whether you have made a capital gain or capital loss from an asset.

    This means you need records to substantiate the purchase and disposal of any asset, as well as other costs relating to the asset. Records can include contracts, valuations, and details of commissions and legal fees paid.

    The records must:

    • show the nature of the act, transaction, event or circumstance, and the date it happened
    • be in English, or in a form that can be readily translated into English, and
    • be kept for five years after you sell or otherwise dispose of an asset, unless you keep a CGT asset register (see below).

    It pays to keep good records

    If you don't keep proper CGT records you may:

    • incur extra expense in establishing the cost of an asset when you come to dispose of it, and
    • have to pay more tax.

    CGT asset register

    You may find that a simpler way to keep records of assets is to keep a CGT asset register. This is a register of information about your CGT assets that you've transferred from your CGT records (for example, invoices, receipts and contracts).

    For most assets this information includes:

    • the date the asset was acquired
    • the cost of the asset
    • a description, amount and date for each cost associated with purchasing the asset (for example, stamp duty and legal fees)
    • the date the asset was disposed of
    • the amount received on disposal of the asset, and
    • any other information relevant to calculating your CGT obligation.

    You can discard your CGT records five years after having an asset register entry certified if:

    • you enter all the necessary information about an asset in your CGT asset register
    • the entry is in English and is certified in writing by an approved person (for example, a registered tax agent), and
    • the asset register entry is certified after 31 December 1997 (although the asset itself may have been acquired before this date).

    If you don't keep an asset register, you generally have to keep CGT records for at least five years after you dispose of an asset. For example, if you hold an asset for 10 years and then sell it, you'd have to keep the records for 15 years.

    Example: CGT asset register

    Ethan is 25 and bought a business property on 1 January 1998.

    His tax agent advised him to transfer the relevant CGT information from his records (for example, date he purchased the property, purchase price, stamp duty, legal expenses) to an asset register. Ethan did this and his agent certified the register on 1 July 1998.

    Ethan sold the property on 15 September 2003.

    Because Ethan had recorded the details of the property on an asset register, he had to keep records relating to the property only until 1 July 2003, rather than 15 September 2008.

    End of example

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    Last modified: 14 Jul 2020QC 17086