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derekctl(Newbie)Newbie
29 Aug 2023

Hi there!


I have been granted a PR visa and will first enter Australia in the coming months.


Being a new resident for tax purpose, I would like to clarify some points with regards to my current overseas stock holding:


1) I am holding some stocks over 5 years, which cost base should I apply for these stocks when I calculate the capital gain/loss:

(a) the actual cost I paid 5 years ago; or

(b) closing price at the date I become the tax resident

(which should be my first land date?)


2) I understand that CGT would be reduce by 50% if I am holding the investment over 12 months. Is that applicable to my current holding as my investment is already over 5 years? Or I have to hold 12 months more from the date I become the tax resident to claim the 50% reduction?


Thanks!

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410 views
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DanielleATO(Community Support)Community Support
31 Aug 2023

Hi @derekctl,


Are you going to be selling the overseas stock now you are an Australian resident? Or what was the reason you are wanting to calculate the gain/loss?


We have great guide for Capital Gains and methods you can use when calculating the capital gain/loss.


When it comes to the 12-month ownership. For an asset to qualify for the CGT discount you must own it for at least 12 months before the 'CGT event' happens. This date is not affected by residency status.

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Most helpful reply

DanielleATO(Community Support)Community Support
31 Aug 2023

Hi @derekctl,


Are you going to be selling the overseas stock now you are an Australian resident? Or what was the reason you are wanting to calculate the gain/loss?


We have great guide for Capital Gains and methods you can use when calculating the capital gain/loss.


When it comes to the 12-month ownership. For an asset to qualify for the CGT discount you must own it for at least 12 months before the 'CGT event' happens. This date is not affected by residency status.

derekctl(Newbie)Newbie
31 Aug 2023

Hi Danielle,


Thanks for letting me know that the 12-month ownership is depending on the CGT event and there is no impact from my residency status. That's helpful :)


The reason why I am asking for the CGT calculation is that I am now holding some stocks with profit & some with loss. I am not sure if I should sell the stock "after" entering Australia to entitle the capital loss which can be carried forward to off-set my possible capital gain in the future. I have assumed that I will not entitle the loss if I sell the stock "before" entering Australia as I am still not a resident for tax purpose.


In addition, if I am entitled to the capital loss, I am not sure how my residency status would affect the calculation (i.e. the actual cost I paid 5 years ago or the closing price at the date I become the tax resident).


Thanks!

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