Step 3 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 for each CGT event that has happened during the income year. The Capital gain or capital loss worksheet (PDF, 127KB) can help you work this out. Do not include capital gains that are disregarded, deferred or reduced, or capital losses that are disregarded; see Exemptions and rollovers.
Include the relevant capital gains at this step if you are a small business owner and qualify for one or more of the following small business CGT concessions:
- 50% active asset reduction
- small business rollover relief, or
- small business retirement exemption.
You apply the concessions to the amount of any relevant capital gains remaining after step 8.
In calculating your capital gain, you will use one of the following three methods for each asset:
- indexation method
- discount method
- 'other' method.
For a full explanation of these methods and how to use them to calculate your capital gain or capital loss for each CGT event, see How to work out your capital gain or capital loss in part A.
For a CGT event that happens after 11.45am (by legal time in the ACT) 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.
If you use the discount method, do not apply the discount percentage until you have applied current year capital losses and unapplied net capital losses from earlier years.
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 the trustee used in calculating the amount of the capital gain. For more information, see Trust distributions in part A.
Concessions that may apply
There are special rules if a trust’s net capital gain was reduced by the CGT discount or by applying the small business 50% 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. For more information, see Trust distributions.
Step 4 Total current year capital gains
If you do not have any capital gains from collectables, add up all your capital gains from step 3 and write this amount at H Total current year capital gains item 18 on your tax return (supplementary section).
If you have a capital gain from collectables, deduct any capital losses from collectables (including unapplied net capital losses from earlier years from collectables). Do not deduct capital losses from other capital gains at this stage.
Any capital gain remaining is added to all your other capital gains from step 3. Write the total amount at H item 18 on your tax return (supplementary section).
If you received (or are entitled to receive) a distribution from a trust that includes a net capital gain, you also need to include this amount here in your total capital gains. Do not include this amount as a distribution from the trust at 13 Partnerships and trusts on your tax return (supplementary section).
If your capital gains from collectables were reduced to zero when you applied your losses from collectables, and you still have capital losses from collectables remaining, then make a note of this amount.
This capital loss can be carried forward to future years, see step 11, and will be recorded at V Net capital losses carried forward to later income years item 18 on your tax return (supplementary section).