How to calculate a capital loss

Example 14: Calculating a capital loss

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 2013. 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	$100,000
less capital works deductions	$7,500
Reduced cost base	$92,500
less capital proceeds	$90,000
Capital loss	$2,500

End of example

Start of example

Example 15: Calculating a capital loss

In July 1996, Chandra bought 800 shares at $3 per share. He incurred brokerage and stamp duty of $100. In December 2013, 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

Date expense incurred	Description of expense	Expense
July 1996	Purchase price	$2,400
July 1996	Brokerage and stamp duty	$100
December 2013	Brokerage	$75
Reduced cost base		$2,575

Calculation of capital loss

Reduced cost base	$2,575
Capital proceeds 800 x $2.50	$2,000
Capital loss	$575

End of example