Step 2-Calculating your current year capital gain or capital loss for each CGT asset or CGT event



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

End of attention

Calculate whether you have made a capital gain or capital loss as a result of each CGT event that has happened during the year. The sample Capital gain or capital loss worksheet in this guide can help you work this out.

In calculating your capital gain, you will use one of the following 3 methods for each asset:

  • indexation method
  • discount method
  • 'other' method.

See chapter 2 in part A for a full explanation of these methods and how to use them to calculate your capital gain or capital loss for each CGT event.

Note-Choosing which method to use

For a CGT event that happens after 11.45 am on 21 September 1999 to a CGT asset that you acquired at or before that time, you can choose to use either the indexation or the discount method to calculate your capital gain if you have owned the asset for at least 12 months. If you bought and sold your asset within 12 months, you must use the 'other' method to calculate your capital gain.

You also need to work out the amount of any capital gains that you are taken to have made as part of a distribution from a trust. You must use the same method as the trustee used in calculating the amount of the capital gain. For more information, see chapter 4 in part A.

Note-Concessions that may apply

There are special rules if the trust's net capital gain was reduced by the CGT discount or by applying the small business 50 per cent active asset reduction, or both. The trust should advise you if it has claimed either (or both) of these concessions as you will need to adjust the amount of the net capital gain to be included in your total capital gains (see chapter 4 in part A for more information).

Last modified: 06 Oct 2009QC 27417