Author: pkh1223(Enthusiast)Enthusiast 4 Dec 2021Hi, It would be great if I could get any related ATO reference regarding my case from here in ATO community. Let's say that I have 100 shares in a private company (Pty Ltd) at $1.00. I gave 50 shares to my wife like 10 years ago. As those shares were not traded in the market and no actual payment made between us, there was no valuation on the share made. Consequently, I made no declaration on the share transfer. Now, my wife wants to transfer the shares to our son. My question 1 would be, did I get it right with no declaration for the share transfer 10 years ago on my tax return ? If not, what should I have done ? My question 2 would be, is she okay to transfer the shares to our son at the book value of $1.00 per share, making no capital gain or loss ? If she needs to value the share at the market value, based on what ATO regulation or reference she needs to do it ? What methods does she have to do it by ATO regulation ? We just want to make sure that we get everything right on the share transfer and do the right thing, paying the correct capital gain tax on it, if necessary. Thanks.
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