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This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attentionGenerally, you make a capital loss if your reduced cost base is greater than your capital proceeds. The excess is your capital loss.
Example 14: Calculating a capital loss - Antonio
Antonio acquired a new income-producing asset on 28 September 1999 for $100,000, including stamp duty and legal costs. He sold it for $90,000 in November 2008. During the period he owned it, he was allowed capital works deductions of $7,500. Antonio works out his capital loss as follows.
Cost base
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$100,000
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less capital works deductions
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$7,500
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Reduced cost base
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$92,500
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less capital proceeds
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$90,000
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Capital loss
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$2,500
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Example 15: Calculating a capital loss - Chandra
In July 1996, Chandra bought 800 shares at $3 per share. He incurred brokerage and stamp duty of $100. In December 2008, Chandra sold all 800 shares for $2.50 per share. He incurred brokerage of $75. He made a capital loss, calculated as follows.
Calculation of reduced cost base
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Date expense incurred
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Description of expense
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Expense
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July 1996
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Purchase price
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$2,400
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July 1996
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Brokers fees and stamp duty
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$100
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December 2007
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Brokers fees
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$75
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Reduced cost base
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|
$2,575
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Calculation of capital loss
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|
Reduced cost base
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$2,575
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Capital proceeds 800 x $2.50
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$2,000
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Capital loss
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$575
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However, the reduced cost base is not relevant for some types of CGT events. In these cases, see appendix 1 for the amounts to use for the particular CGT event.
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Reduced cost base
You cannot index a reduced cost base.
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Last modified: 09 Mar 2010QC 27956