Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_1:p5
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 5/9)
Character Range: 15263–18012

exceed the capital gains, the difference is your net capital loss. (You cannot deduct a net capital loss from your assessable income.)

 For the rules on working out your net capital gain or loss:
see Division 102.

100‑55  How do you comply with CGT?

  Declare any net capital gain as assessable income in your income tax return.

  Defer any net capital loss to the next income year for which you have capital gains that exceed the capital losses for that income year.

Keeping records for CGT purposes

100‑60  Why keep records?

 1. To ensure you do not disadvantage yourself.

 2. To comply as easily as possible.

 3. To plan for your CGT position in future income years.

 4. The law requires you to: see Division 121.

100‑65  What records?

  Keeping full records will make it easier for you to comply. For example, keep records of:

 • receipts of purchase or transfer;

 • interest on money you borrowed;

 • costs of agents, accountants, legal, advertising etc.;

 • insurance costs and land rates or taxes;

 • any market valuations;

 • costs of maintenance, repairs or modifications;

 • brokerage on shares;

 • legal costs.

100‑70  How long you need to keep records

  The law requires you to keep records for 5 years after a CGT event has happened.

Division 102—Assessable income includes net capital gain

Guide to Division 102

102‑1  What this Division is about

      This Division tells you how to work out if you have made a net capital gain or a net capital loss for the income year. A net capital gain is included in your assessable income. However, you cannot deduct a net capital loss. (Amounts otherwise included in your assessable income do not form part of a net capital gain.)

Table of sections

Operative provisions

102‑5 Assessable income includes net capital gain
102‑10 How to work out your net capital loss
102‑15 How to apply net capital losses
102‑20 Ways you can make a capital gain or a capital loss
102‑22 Amounts of capital gains and losses
102‑23 CGT event still happens even if gain or loss disregarded
102‑25 Order of application of CGT events
102‑30 Exceptions and modifications

Operative provisions

102‑5  Assessable income includes net capital gain

 (1) Your assessable income includes your net capital gain (if any) for the income year. You work out your net capital gain in this way:

      Working out your net capital gain

           Step 1. Add up the *capital gains you made during the income year. Also add up the *capital losses you made.

           Step 2. Subtract your *capital losses from your *capital gains. (If your capital losses exceed your capital gains, you have no net capital gain for the income year.)

                  Note: