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

Keeping track of the cost base can be done by maintaining records, which you are legally obliged to do, and using accounting software such as Myob AccountRight to keep track of your expenses associated with 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, and determine how much you pay with a tax calculator.