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Re: Capital gain tax on overseas shares acquired before being an Australia tax resident

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Hi All,

 

As per ATO's information about captial gain tax on overseas asset: "If you acquired an overseas asset before you became an Australian resident, you are taken to have acquired the asset when you became an Australian resident.". However, the shares I bought earlier has de-preciated unfortunately. I.e., on the date I became an Australia resident, the share price is lower than the original share price when I acquired them. 

 

So when I sell the shares in future, can I take the original share price as reference when calculating the captial gain tax? Or must I use the lower price on the date becoming an Australia resident, which may result in a higher capital gain tax?

 

Thanks.

 

 

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Most helpful response

ATO Community Support

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Hi @phschan,

 

You must use the value at that date for the first element of the cost base when calculating your capital gain.

 

There's no choice in this, as it is legislative, under 855‑45 of the Income Tax Assessment Act 1997.

 

You can read about changing residency on our website, and 855-45 of ITAA 1997 on our legal database.

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @phschan,

 

You must use the value at that date for the first element of the cost base when calculating your capital gain.

 

There's no choice in this, as it is legislative, under 855‑45 of the Income Tax Assessment Act 1997.

 

You can read about changing residency on our website, and 855-45 of ITAA 1997 on our legal database.