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 |
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 |