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

Last updated 30 August 2010

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 loss worksheet in this guide can help you work this out.

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

  • indexation method
  • discount method, or
  • '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 11.45am 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.

For most assets, you can use a different method to calculate the capital gain for each CGT event, but with a distribution from a trust you must use the same method as the trust. For more information, see chapter 4 in part A.

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 item 12-Partnerships and trusts in your tax return. For more information about distributions or events involving trusts, 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% 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).