Record the capital gains tax event when an asset is settled on or transferred to a trust
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the deed and the transfer, record the asset, the date the trust was created or the asset was transferred, and the event label from the published table. Do not calculate the gain.
- What the lawyer must review
- The lawyer decides whether event E1 or E2 happened and works out the capital proceeds and the cost base.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the deed and the transfer, record the asset, the date the trust was created or the asset was transferred, and the event label from the published table. Do not calculate the gain. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Event E1, creating a trust over a CGT asset, happens when the trust is created. The gain is the capital proceeds from creating the trust less the asset's cost base. The loss is the reduced cost base less the capital proceeds.
- Event E2, transferring a CGT asset to a trust, happens when the asset is transferred. The gain is the capital proceeds from the transfer less the cost base. The loss is the reduced cost base less the capital proceeds.
- Do not apply a rollover or an exemption the table does not state.
- The lawyer decides which event applies and calculates the gain or loss.
Sources
- Australian Taxation Office: CGT events · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.