• Chapter 2-How to work out your capital gain or capital loss

    Attention

    Warning:

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

    End of attention

    This chapter explains how to work out your capital gain or capital loss. There are 3 methods that you can use to work out your capital gain. There is only one way to work out your capital loss.

    The Capital gain or capital loss worksheet provided in this guide shows the 3 methods of calculating a capital gain: the indexation method, the discount method and the 'other' method. You are not obliged to use this worksheet but you may find it helps you calculate your capital gain or capital loss for each CGT event.

    You make a capital loss if your reduced cost base is greater than your capital proceeds-the excess is your capital loss.

    Note-New terms

    If there are terms in this chapter that are not familiar to you, refer to Explanation of terms.

    Last modified: 06 Oct 2009QC 27417