• Step 5 - Work out whether the gain is from a depreciating asset

    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 can make a capital gain or capital loss from the disposal of a depreciating asset only to the extent that you use the depreciating asset for a non-taxable purpose (for example, for private purposes).

    If the capital gain is from a depreciating asset, you cannot use any of the small business CGT concessions to reduce the gain any further. If it is not from a depreciating asset, you may be able to reduce your capital gain further under the remaining small business CGT concessions.

    Example: depreciating assets

    The land that Lana disposed of was not a depreciating asset, so she can use the remaining small business CGT concessions to reduce her capital gain if she meets the relevant conditions.

    Last modified: 28 Jun 2012QC 25843