Capital assets are a form of investment that often yield the best returns – however it may also attract a significant amount of tax.
Regardless of whether assets are employed in trade or used by individuals for their personal purposes, there is a possibility that capital gains tax will apply the moment the asset is disposed of.
This course is the third step in this series, and aims to assist the taxpayer in understanding the valuation of pre-valuation date assets for CGT purposes, as well as the various exclusions that are available.
This session will cover the following:
• A brief overview of the basic workings of capital gains tax
• The determination of base cost for pre-valuation date assets (assets acquired before 1 October 2001), including when a person became a resident after the valuation date
• The primary residence exclusion (and when to adjust capital gains or losses that qualify for it), personal use assets and other exclusions
• Roll-over provisions for involuntary disposals and voluntary replacement of assets
• A brief overview of the CGT implications when assets transfer to and from a deceased estate or a trust
All taxpayers (individuals, trusts or companies) with capital assets, as well as the tax or other professionals managing their tax affairs.
