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Article: Capital gains tax--time of making a contract
- Article from:
- Intheblack
- Article date:
- June 1, 1998
- Author:
CopyrightCopyright Australian Society of CPAs Jun 1998. Provided by ProQuest LLC. (Hide copyright information)
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For capital gains tax purposes, it is often important to establish the time of acquisition and/or disposal of an asset. This is because:
* the capital gains tax only applies to assets acquired (or deemed to have been acquired) on or after the 20 September 1985 (the capital gains tax commencement date). As a consequence it may be important to determine whether an asset was acquired before or on or after that date;
* the indexation adjustment (only inflation indexed profits are subject to the capital gains tax) as determined according to the dates on which an asset was acquired and then disposed;
* as a matter of tax planning, tax may be able to be deferred if an asset can be taken for tax ...