• If capital gains tax affects you, how do you work it out?

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    The following steps give you a broad outline of how to calculate the capital gain or loss for most CGT events. The terms used are explained in the following pages.

    • Work out your capital proceeds from the CGT event.
    • Work out the cost base for the CGT asset.
    • Subtract the cost base from the capital proceeds.
    • If the proceeds exceed the cost base, the difference is your capital gain.
    • If not, work out the reduced cost base for the asset.
    • If the reduced cost base exceeds the capital proceeds, the difference is your capital loss.
    • If the capital proceeds are less than the cost base but more than the reduced cost base, you have made neither a capital gain nor a capital loss.
    Last modified: 18 Sep 2009QC 18323