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



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End of attention

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