Private ruling: CGT - capital proceeds
Published: September 2014
Ruling period: Year ended 30 June 2015
Date scheme commenced: 1 July 2014

Ruling: Q1: 1. For the purposes of Subsection 292-100(2) of the Income Tax Assessment Act 1997 , does the term capital proceeds mean the sale price of the business/property which the purchaser paid? | A2: No .

Relevant facts and circumstances: You sold your business/property.

Relevant legislative provisions: Income Tax Assessment Act 1997 Subsection 116-20(1).

Reasons for decision: Summary: Subsection 116-20(1) of the Income Tax Assessment Act 1997 states that the capital proceeds from a CGT event are the total of: (a) the money you have received, or are entitled to receive, in respect of the event happening, and (b) the market value of any other property you have received, or are entitled to receive, in respect of the event happening (worked out as at the time of the event). In your case, a CGT event occurred when you disposed of your CGT asset/s. The money you received for the business and property is the capital proceeds from the event. Capital proceeds are not reduced by things such as selling fees or the cost base.

2. For the purposes of subsection 292-100(2) of the Income Tax Assessment Act 1997, d oes the term capital proceeds mean the sale price of the business/property less such things as the initial cost base and selling fees and settlement costs?