Method type |
Indexation method |
Discount method |
'Other' method |
---|---|---|---|
Description of method |
Allows you to increase the cost base by applying an indexation factor based on CPI up to September 1999 |
Allows you to discount your capital gain |
Basic method of subtracting the cost base from the capital proceeds |
When to use the method |
Use for an asset owned for 12 months or more if it produces a better result than the discount method. Use only for assets acquired before 11.45am (by legal time in the ACT) on 21 September 1999. |
Use for an asset owned for 12 months or more if it produces a better result than the indexation method. |
Use when the indexation and discount methods do not apply (for example, if you have bought and sold an asset within 12 months). |
How to calculate your capital gain using the method |
Apply the relevant indexation factor (see CPI table at appendix 2, then subtract the indexed cost base from the capital proceeds (see worked example for Val ) |
Subtract the cost base from the capital proceeds, deduct any capital losses, then reduce by the relevant discount percentage (see worked example for Val) |
Subtract the cost base (or the amount specified by the relevant CGT event) from the capital proceeds (see worked example for Marie-Anne) |
Capital gain calculation methods
Last updated 3 March 2016
QC27527