Step by step guide to capital gains

Overview

The completion of the CGT labels on your entity's tax return involves a:

• three-step process for entities with capital gains or capital losses under the $10,000 threshold, or
• four-step process for companies, trusts or funds with capital gains or capital losses over the $10,000 threshold.

Step 1	Calculate a capital gain or capital loss for each CGT event that happens during the income year using the Capital gain or capital loss worksheet.
Step 2	Calculate the net capital gain or net capital loss for the income year using the CGT summary worksheet.
Step 3	If required, complete a CGT schedule.
Step 4	Complete the capital gains item on your entity's tax return.