Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 100
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A Guide to capital gains and losses
Step 1
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Have you made a capital gain or a capital loss?
Step 2
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Work out the amount of the capital gain or loss
SECTION 100-45 100-45 How to calculate the capital gain or loss for most CGT events
1. Work out your capital proceeds from the CGT event.
2. Work out the cost base for the CGT asset.
3. Subtract the cost base from the capital proceeds.
4. If the proceeds exceed the cost base, the difference is your capital gain .
5. If not, work out the reduced cost base for the asset.
6. If the reduced cost base exceeds the capital proceeds, the difference is your capital loss .
7. If the capital proceeds are less than the cost base but more than the reduced cost base, you have neither a capital gain nor a capital loss .
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Hide history noteSECTION 100-45 100-45 How to calculate the capital gain or loss for most CGT events
1. Work out your capital proceeds from the CGT event.
2. Work out the cost base for the CGT asset.
3. Subtract the cost base from the capital proceeds.
4. If the proceeds exceed the cost base, the difference is your capital gain .
5. If not, work out the reduced cost base for the asset.
6. If the reduced cost base exceeds the capital proceeds, the difference is your capital loss .
7. If the capital proceeds are less than the cost base but more than the reduced cost base, you have neither a capital gain nor a capital loss .
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