• 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 each capital gain or capital loss you made during the year.

    It does not explain how to work out your net capital gain or net capital losses carried forward to later income years. If you are completing a tax return for an individual and want more information on how to calculate your net capital gain for the year or net capital losses carried forward to later income years (including how to deduct any unapplied net capital losses from earlier years), see part B of this guide. For more information about companies, trusts and funds or about completing the CGT summary worksheet, see part C of this guide.

    There are three 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 shows the three 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.

    New terms

     

    We may use some terms that are new to you. These words are explained in Definitions. Generally they are also explained in detail in the section where they first appear.

    Last modified: 06 Oct 2009QC 18504