How do I treat the capital loss or capital gain?

Capital loss

If you made a capital loss you can offset this loss against other capital gains you made in the 2004-05 income year. If you are unable to offset all the capital loss, you can carry the balance forward to offset against future capital gains. You must include these details when completing item 17 on your 2004-05 tax return (supplementary section).

Capital gain

If you made a capital gain on the disposal of your Westfield Holdings shares, you must include it in your calculations when completing item 17 on your 2004-05 tax return (supplementary section).

The method you use to work out the amount to include in your item 17 calculations depends on when you acquired those shares. The following table sets out what method you can use.

If you acquired your Westfield Holdings shares:

You calculate your capital gain using the:

Before 21 September 1999

Indexed cost base or discount method

Note: if you have capital losses to apply against capital gains you made on shares acquired before 21 September 1999, you may want to use the indexation method for some of your shares and the discount method for the others. (For more information, see example of Clare in chapter 2 of the Guide to capital gains tax 2004-05)

After 21 September 1999 and before 2 July 2003

Discount method (after applying any capital losses - including unapplied capital losses from previous years)

On or after 2 July 2003

'Other' method.

* If you choose to index the cost base of shares you acquired before 21 September 1999, you cannot apply the CGT discount when you dispose of them.

For information on the different methods you can use to work out your capital gain, see the Guide to capital gains tax 2004-05.

    Last modified: 06 Oct 2009QC 18166