Are you a taxpayer who has made a capital gain after 11.45am on September 21, 1999 or a taxpayer who holds Capital Gains Taxable assets?
At a glance: A Capital Gain is only eligible for a Capital Gains Tax (CGT) Discount if the CGT asset being disposed of was acquired at least 12 months before the date of disposal.
A Capital Gain is only eligible for a Capital Gains Tax (CGT) Discount if the CGT asset being disposed of was acquired at least 12 months before the date of disposal (Click here for more information on the CGT discount). According to the Tax Office, the use of the words 'at least' requires a clear period of 12 months to expire between the acquisition of the CGT asset and the date of disposal. As such, a period of 365 days must elapse between the day on which the asset was acquired and the day on which the asset was sold/disposed of.
For example, an asset purchased on February 2, 2001 will qualify for the discount if it was sold on or after February 3, 2002. Note that for years in which the month of February has 29 days, there must be 366 days between the date of acquisition and the date of disposal.
Remember: You may be able to reduce the CGT payable on the sale of an asset by holding the asset for more than 12 months and meeting the other eligibility criteria and be aware of the requirements for the CGT discount. Contact us if you require any clarification or advice.
