11.160 Step 5: Calculating the capital gain or capital loss
A capital gain arises where the capital proceeds from a CGT event are greater than the ‘cost base’ of the CGT asset. A capital loss only occurs if the capital proceeds from a CGT event are less than the ‘reduced cost base’ of a CGT asset (see 11.102 and 11.120).
A capital gain will arise where the capital proceeds from a CGT event are greater than the cost base of the CGT asset. This cost base can be indexed or discounted if the CGT event occurs at least 12 months after the date the asset was acquired and the taxpayer is permitted to, and chooses to use the indexation method or discount method to calculate the capital gain (see 11.165). The capital gain is included in ...