CGT: Keep the right records
The ATO has reminded taxpayers that they should keep all records of purchases or acquisitions of assets that may be subject to CGT, and records relating to their sale or disposal, including details of the nature of the act, transaction, event or circumstance, how it resulted in a capital gain or loss, the date it occurred, and the parties involved.
The records used to work out the amount of the capital gain or capital loss should also be kept, which may include:
- receipts of a purchase or transfer;
- details of interest on money borrowed relating to the asset;
- records of agent, accountant, legal and advertising costs;
- receipts for insurance costs;
- receipts for rates, land tax and stamp duty;
- any market valuations;
- receipts for the cost of maintenance, repairs or modifications;
- accounts showing brokerage on shares; and
- records from the previous owner – for example, for inherited assets.