ato logo
Search Suggestion:

Other CGT events

Last updated 5 October 2009

CGT event

Time of event

Capital gain

Capital loss

K1 Partial realisation of an intellectual property right

when a contract is entered into or, if none, when partial realisation happens

capital proceeds from partial realisation less the cost base of the item of intellectual property

no capital loss

CGT event K1 does not apply to partial realisations on or after 1 July 2001

K2 Bankrupt pays an amount in relation to debt

when payment is made

no capital gain

that part of the payment that relates to the denied part of a net capital loss

K3 Asset passing to a tax-advantaged entity

when an individual dies

market value of the asset at death less its cost base

reduced cost base of the asset less that market value

K4 CGT asset starts being trading stock

when the asset starts being trading stock

market value of asset less its cost base

reduced cost base of asset less that market value

K5 Special capital loss from a collectable that has fallen in market value

when CGT event A1, C2 or E8 happens to shares in the company, or an interest in the trust, that owns the collectable

no capital gain

market value of the shares or interest (as if the collectable had not fallen in market value) less the capital proceeds from CGT event A1, C2 or E8

K6 Pre-CGT shares or trust interest

when another CGT event involving the shares or interest happens

capital proceeds from the shares or trust interest that are attributable to a post-CGT asset owned by the company or trust, less the assets' cost bases

no capital loss

K7 Balancing adjustment occurs for a depreciating asset that you used for purposes other than taxable purposes

when the balancing adjustment event occurs

termination value less cost times fraction

cost less termination value times fraction