Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p37
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 37/58)
Character Range: 2390273–2392855

of the capital loss as is equal to that maximum amount; or
 (b) otherwise—all of the capital loss.
Note: When you receive a financial benefit under the look‑through earnout right:
(a) you cease to disregard under this section a portion of your loss related to the amount of that financial benefit; and
(b) your capital proceeds for the disposal increase (see paragraph 116‑120(1)(b)), causing a reduction in the amount of your loss.

Division 121—Record keeping

Guide to Division 121

121‑10  What this Division is about
      You must keep records of matters that affect the capital gains and losses you make. You must retain them for 5 years after the last relevant CGT event.

Table of sections

Operative provisions
121‑20 What records you must keep
121‑25 How long you must retain the records
121‑30 Exceptions
121‑35 Asset register entries

Operative provisions

121‑20  What records you must keep
 (1) You must keep records of every act, transaction, event or circumstance that can reasonably be expected to be relevant to working out whether you have made a *capital gain or *capital loss from a *CGT event. (It does not matter whether the CGT event has already happened or may happen in the future.)
Note 1: There are exceptions: see section 121‑30.
Example 1: You dispose of a CGT asset. The records that are relevant to working out your capital gain or loss are records of:
• the date you acquired the asset;
• the date you disposed of it;
• each element of its cost base and reduced cost base and the effect of indexation on those elements;
• what you sold it for (the capital proceeds).
Example 2: Company A disposes of a CGT asset it acquired from company B (a member of the same wholly‑owned group and a foreign resident) where company B obtained a roll‑over under Subdivision 126‑B. In addition to the records mentioned in example 1, company A needs records showing:
• the status of the 2 companies as members of the group;
• which company is the ultimate holding company in the group;
• the cost base and reduced cost base of the asset in the hands of company B just before the roll‑over (because these become company A's cost base and reduced cost base).
Example 3: CGT event G2 (about shifts in share values) happens involving company X and Greg (a controller (for CGT purposes) of company X). Z Nominees Pty Ltd (an associate of Greg's) suffers a material decrease in the value of its shares in company X as a result of the shift. Z Nominees needs records showing:
• the essential elements of the relevant scheme;
• the date when the share value shift occurred;