Topic 4 Capital Gians Tax Definitions

Question 1

Capital proceeds

Answer 1

Capital proceeds

In general, the ‘capital proceeds’ from a CGT event is the sum of the money and/or the market value of the property that the taxpayer has received, or is entitled to receive, in respect of the CGT event happening (s 11-20(1) ITAA97). Where the CGT event is also a ‘supply’ for GST purposes, the capital proceeds do not include an GST charged on the supply (s 116-20(5))