Avoiding Common Capital Gains Tax (CGT) Errors
When it comes to Capital Gains Tax, one small oversight can result in significant errors – and potential penalties. The ATO is reminding taxpayers that even with a Foreign Resident Capital Gains Withholding (FRCGW) clearance certificate, CGT still needs to be carefully reported.
Here are some of the common issues we’re seeing:
- Forgetting to declare a gain or loss after selling an investment property or shares
- Incorrectly applying the main residence exemption (e.g. not accounting for time the property was rented out)
- Not reporting withheld amounts correctly – especially when the purchaser has submitted a withholding payment to the ATO on your behalf
If you sold a property or asset during the year, we’ll need detailed records, including:
- The FRCGW confirmation from the purchaser (if applicable)
- Details of when you lived in or rented the property
- Any associated purchase/sale costs
Getting CGT right can be complex, but that’s where we come in. Reach out to our tax specialists on 1800 618 800 or email admin@simmonslivingstone.com.au.
