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Re: Foreign Income Capital Gains/Deemed Acquisition Tax Question

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Hi All!

 

I apologise if this question has already been answered but I couldn't seem to find it on the forum.

 

I understand that upon becoming an Australian resident (and resident for tax purposes) deemed aquisition occurs for your CGT assets at market value when your visa is granted. Now suppose I have a capital gain of $10,000 from US stocks, however only $2000 of gain occured while an Australian resident. In preparing a tax return, do you claim the  $10000 or $2000 as a capital gain/are you responsible for tax on the full amount or only the $2000 (or perhaps $1000 if a CGT disount applies)?

 

Thank you!!

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Hi @Vino_DD,

 

If you have moved to Australia you will need to determine residency in the first instance. This is usually the date you arrive here, unless you remain a temporary resident. If this is the case then it will be the date your PR was granted. Whatever the market value was on that date will be the amount you factor in when determining your cost base. If you're an investor, you would declare the capital gain or loss when you sell or dispose of the capital asset.

 

You declare your total capital gain first at Total capital gain label. Thereafter if you held the asset 12mnths+ you can apply the CGT discount. The new figure goes at your Net capital gain label. This is also the label we use when applying marginal tax rates.

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Hi @Vino_DD,

 

If you have moved to Australia you will need to determine residency in the first instance. This is usually the date you arrive here, unless you remain a temporary resident. If this is the case then it will be the date your PR was granted. Whatever the market value was on that date will be the amount you factor in when determining your cost base. If you're an investor, you would declare the capital gain or loss when you sell or dispose of the capital asset.

 

You declare your total capital gain first at Total capital gain label. Thereafter if you held the asset 12mnths+ you can apply the CGT discount. The new figure goes at your Net capital gain label. This is also the label we use when applying marginal tax rates.

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Great, thank you for the advice @Jodie_ATO!

 

--vino_dd