The ATO have notified taxpayers recently that they are going to be paying close attention to capital gains made on shares, property and cryptocurrency this year.

It is important to remember that the disposal of an asset can also include the loss or destruction of an asset.  It is not limited to an actual sale.

Taxpayers generally need to keep records relating to any CGT event, including asset disposals, for at least five years after the event occurred.

These records include:

• Receipts for a purchase, transfer or sale.
• All receipts for insurance, rates and land taxes for properties held as investments.
• Receipts for any repairs and maintenance.
• Receipts for any improvements made.
• If any money was borrowed, the details of the interest on these loans.
• Any market valuations completed on income producing properties.
• Brokerage paid on shares and cryptocurrency purchases and sales.
• Digital wallet records and keys.

Some taxpayers incorrectly assume that losses on disposal do not need to be included in the tax return.  While you may not be able to claim a deduction in the current year, it is possible that these losses may be used to offset a capital gain in a future year.  Therefore, all information on asset disposals should be provided when sending in your tax information.

Contributed by Kerryn Groves.