Steps to Calculating your Capital Gains Tax

1. Determine your capital proceeds i.e. the money you received from the sale.

2. Determine your cost base. Your cost base includes:

• the original purchase price

• any costs associated with purchasing it

• any costs associated with selling it (e.g. agents' commissions & legal fees)

• any depreciation you have claimed on the asset

3. capital proceeds - cost base = gross capital gain

4. Apply any discounts or concessions that may be available (e.g. the 50% CGT Discount)

5. gross capital gain x CGT discount (if applicable) = net capital gain

6. Add your net capital gain to your taxable income, so the tax you pay on it depends on what tax bracket you are in.