Capital gains tax question

Viewing 6 posts - 1 through 6 (of 6 total)

jamesR
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@jamesr
Join Date: 2004
Post Count: 15
May 23, 2004 - 8:26 am
I happend to be flipping through a book on taxation (I think it was the master tax guide 2004), and I came across this.
It was called something like CGT rollover. If a company sells an asset then replaces it with another asset exactly the same, or with one or multiple other (non-same) assets they can choose not to pay CGT. The new asset(s) have to cost the same or more(120%) than the asset you just sold.
Is this true? Sometimes the book referred to the company, and other times just said the taxpayer. I wonder if you can do this outside of a company.
Anyway if this or something like this is true it would be interesting. Any comments welcome.
james
Terryw
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Join Date: 2001
Post Count: 16,213
May 24, 2004 - 1:39 pm
Hi James
I don’t think that applies to property, but to certain other types of assets (like machinery etc??).
Terryw
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gmh454
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Join Date: 2003
Post Count: 537
May 25, 2004 - 6:54 am
If the prty was industrial or comm and part of the business, and the whole business was sold it may apply.
vkolaj
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@vkolaj
Join Date: 2004
Post Count: 4
May 25, 2004 - 11:10 am
JamesR:
The CGT rollover relief you were talking about does not apply to companies only, but to trusts and sole traders as well. In short, to all small business.
TerryW: It can apply to the property as well if it satisfies an active asset test.
gmh454: You were closest to the right answer. However, you does not have to sell all assets or all business.
Cheers
Vkolaj
WallFlower
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@wallflower
Join Date: 2004
Post Count: 205
May 25, 2004 - 11:30 am
Hey, Hey, Hey, i mentioned this on another post on CGT. This is freaky, someone (who isn’t cleanig pooy bottoms and wiping up vomit all day )has to investigate this further.
Actually i think this topic has been covered before and the outcome was very vague…[confused2]
Derek
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@derek
Join Date: 2004
Post Count: 3,544
May 26, 2004 - 9:13 am
Originally posted by vkolaj:
JamesR:
It can apply to the property as well if it satisfies an active asset test.
Vkolaj
A couple of useful documents to assist with the definition of active assets.
http://www.ato.gov.au/content/downloads/n8384CGT.pdf
A search on ‘Active Assets’ as defined in the ATO’s legal database revealed a section 152-40 which defines an ‘active asset.’
http://law.ato.gov.au/atolaw/view.htm?find=%22active%20assets%22&docid=PAC/19970
Derek
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