Guide to capital gains tax 2006-07

Step 1 - Types of CGT assets and CGT events

Certain capital gains and capital losses (that is, those from collectables and personal use assets) are treated differently when calculating your net capital gain or net capital loss. See chapter 1 in part A for explanations of these assets. In particular, you should note that you disregard capital losses from personal use assets and do not take them into account when working out your net capital gain. You can only use capital losses from collectables to reduce capital gains from collectables.

You need to separate the records of your CGT events into the following three categories:

• those relating to collectables (for example, jewellery)
• those relating to personal use assets (for example, a boat you use for recreation)
• other CGT assets or CGT events, including distributions of capital gains from managed funds.

Sections within Part B - Completing the capital gains section of your tax return

• Read this first
• Introduction
• Step 1 - Types of CGT assets and CGT events
• Step 2 - Calculating your current year capital gain or capital loss for each CGT asset or CGT event
• Step 3 - Total current year capital gains
• Step 4 - Capital losses
• Step 5 - Applying current year capital losses
• Step 6 - Applying net capital losses from earlier years
• Step 7 - Applying the CGT discount
• Step 8 - Applying the small business CGT concessions
• Step 9 - Working out your net capital gain
• Step 10 - Capital losses carried forward to later income years