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



    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