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CGT implications when becoming PR

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Newbie

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Hello everyone,

 

On 1 March 2018 I moved to Australia on a 457 temporary visa.

On 1 November 2019 I was granted Permanent Residence through the 186 Visa.

 

Before 1 March 2018 I received 20 stock shares of a company in USA listed on NASDAQ.

 

On 1 December 2019 I sold those 20 shares received before 1 March 2018 and made a Capital Gain.

 

My questions:

1) The Capital Gain is calculated with the Cost Base set according to the market value on 1 November 2019?

2) Since I owned the shares for more than 12 months do I get a 50% discount in CGT? Or the stock ownership actually starts on 1 November 2019 and I am not eligible for the discount?

 

Thank you

1 ACCEPTED SOLUTION

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Best answer

ATO Certified

Moderator

Replies 0

Hi @GabrielC,

 

We have some content on our website about changing residency and capital gains which answers this.

 

When you become an Australian resident (other than a temporary resident), you're taken to have acquired certain assets at the time you became a resident for their market value at that time..

 

So based on this:

1) Yes your cost base is set according to market value on 1 November 2019 when you became resident

2) Stock ownership would have commenced on 1 November 2019 so you would not be eligible for the discount

 

Hope this helps. Thanks, NateH

1 REPLY 1
Highlighted

Best answer

ATO Certified

Moderator

Replies 0

Hi @GabrielC,

 

We have some content on our website about changing residency and capital gains which answers this.

 

When you become an Australian resident (other than a temporary resident), you're taken to have acquired certain assets at the time you became a resident for their market value at that time..

 

So based on this:

1) Yes your cost base is set according to market value on 1 November 2019 when you became resident

2) Stock ownership would have commenced on 1 November 2019 so you would not be eligible for the discount

 

Hope this helps. Thanks, NateH