Financial planning helps people identify and work towards achieving their financial and lifestyle goals. Essentially,…
Any asset disposals information, which can include loss, destruction or sale need to be conveyed to your accountant. These capital gains tax (CGT) events can affect:
- how a capital gain or loss is calculated
- when it is included in a net capital gain or loss.
Records need to be kept relating to any CGT event, including asset disposals for at least five years after the event occurred, these include:
- receipts of purchase, transfer or sale
- if money was borrowed and details of interest
- receipts for insurance, rates and land taxes
- receipts for the cost of maintenance, repairs and modifications
- any market valuations
- brokerage on shares and cryptocurrency
- digital wallet records and keys.
If any net capital losses are incurred, they need to be included in your return as they may be able to offset against capital gains in a later year. Once a loss is offset against a capital gain, records are required to be kept aabout that CGT event for:
- two years (for individuals and small businesses)
- four years (for other taxpayers).
If you require any assistance on asset disposals, please do not hesitate to contact our office on (03) 9848 5933.