Welcome and thank you for giving me the opportunity to assist you with your tax question.
Capital gains tax (CGT) is the tax you pay on a capital gain. It is not a separate tax, just part of your income tax. The most common way you make a capital gain (or capital loss) is by selling assets such as real estate, shares or managed fund investments. However, most real estate is subject to CGT. This includes vacant
land, business premises, rental properties, holiday houses and hobby farms.
Your 'main residence' (family home) is exempt from CGT unless you rented it out
for a time or it's on more than 2 hectares of land.
A number of assets are exempt from CGT, including your home, car, and depreciating assets used solely for taxable purposes. If CGT applies, you may be able to discount your capital gain by 50%. There are a number of other exemptions, rollovers and concessions.
Additionally, as a general rule, capital gains tax (CGT) applies to all changes
of ownership of assets on or after September 20, 1985. However, if you transfer
an asset to your spouse as a result of the breakdown of your marriage or
relationship, there is automatic rollover in certain cases.
This rollover ensures the transferor spouse disregards XXXXX XXXXX gain or capital loss that would otherwise arise. In effect, the one who receives the asset (the transferee spouse) will make the capital gain or capital loss when they subsequently dispose of the asset. If you are the transferee spouse, the cost base of the asset is transferred to you.
This applies to you if your marriage or relationship ended on or
after September 20, 1985, and
you transfer an asset or a share of an asset to your spouse
you receive an asset or a share of an asset from your spouse, or
a company or trustee of a trust
transfers an asset to you or your spouse.
You cannot choose whether or not it applies.
My point of reference for my answer is the following http://www.ato.gov.au/businesses/pathway.aspx?pc=001/001/038. This website contains a wealth of information that will assist you to make a decision.
Thank you and best regards.