The Capital gain or capital loss worksheet calculates a capital gain or capital loss for each separate CGT event. Do not attach completed worksheets to your entity’s 2020 tax return. These are your working papers and should be kept with your entity’s tax records.
There are a few things to remember when you are using the worksheet.
Type of CGT asset or CGT event
You show the type of CGT asset or CGT event that resulted in the capital gain or capital loss.
Organise each of these under one of the following categories:
- shares in companies listed on an Australian securities exchange
- other shares
- units in unit trusts listed on an Australian securities exchange
- other units
- real estate situated in Australia
- other real estate
- amount of capital gain from a trust (including a managed fund)
- collectables
- other CGT assets and any other CGT events.
These categories are the same as those set out in Item 1 of the CGT schedule.
Depreciating assets
There are special rules that apply when working out a capital gain or capital loss for a depreciating asset.
Generally, the gain or loss which arises on disposal of a depreciating asset is calculated as a balancing adjustment under the capital allowance provisions. Those provisions treat as income or allow as a deduction any gain or loss from a depreciating asset to the extent that it was used for a taxable purpose.
A capital gain or capital loss will only arise in respect of a depreciating asset to the extent that it is used for a non-taxable purpose (for example, used privately).
Calculation method
If a capital gain was made, you calculate it using one of the following three methods:
- indexation method (see note 2 of the worksheet) for capital gains made on CGT assets acquired before 11.45am AEST on 21 September 1999
- discount method (see note 3 of the worksheet) for assets owned for at least 12 months and for which you are not using the indexation method, or
- 'other' method (if neither the indexation method nor the discount method applies).
Read How to work out your capital gain or capital loss in part A for an explanation of the methods of calculating a capital gain. These methods and key concepts are also listed in Definitions.
Where you are eligible to use the indexation method and discount method in respect of an asset, you must choose which method to apply. When choosing between these methods, the amounts at (a) and (b) at the bottom of the worksheet do not yet reflect any capital losses or CGT discount you may be able to apply. This affects your choice of the amount to transfer to the CGT summary worksheet, which you can use to calculate your net capital gain or net capital loss.
Organise your worksheets so they are grouped by the type of CGT asset or event and transfer the capital gain or capital loss calculated for each group of worksheets to the CGT summary worksheet. Transfer a capital gain according to the method you used to calculate it and the type of asset that gave rise to it.
If you make a capital loss, this is generally calculated as the difference between your capital proceeds and reduced cost base. You cannot index a reduced cost base.