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  • Work out which methods you can use

    To determine which method (or methods) you can use to work out your capital gain, work through the following questions:

    1. Does the CGT event involve an asset? If you make a capital gain from a CGT event that creates a new asset – for example, receiving a payment for agreeing not to do something (entering into a restrictive covenant) – you can't satisfy the 12-month ownership rule so your CGT event doesn't qualify for the CGT discount.

    2. Have you owned the asset for less than 12 months?

    3. Did you acquire the asset as the legal personal representative or as a beneficiary of a deceased estate? (See Deceased estates and inheritances.)

    3a: Did the person who died acquire it before 20 September 1985?

    3b: Did you dispose of the asset less than 12 months after they died?

    3c: Did you dispose of the asset less than 12 months after the deceased person acquired it?

    4. Did you acquire the asset as the result of a marriage or relationship breakdown? (See Relationship breakdown.)

    4a: Did the period that your spouse owned the asset before it was transferred to you plus the period you owned the asset total less than 12 months?

    5. Is the asset a rollover asset? That is, does it replace an asset that was compulsorily acquired, lost or destroyed, disposed of as a result of a mining lease being compulsorily granted, or acquired following negotiations rather than compulsorily? (See Involuntary disposal of a CGT asset.)

    5a: Was the total period of ownership of the original asset and the replacement asset less than 12 months?

    6. Did you acquire the asset before 21 September 1999?

    Next steps:

    See also:

    Last modified: 20 Jun 2017QC 52168