(1) For most CGT events, the capital amounts you receive (or are entitled to receive) from the event are called the capital proceeds .
To work out the capital proceeds: see Division 116.
Cost base and reduced cost base
(2) For most CGT events, your total costs associated with the event are worked out in 2 different ways:
• For the purpose of working out a capital gain , those costs are called the cost base of the CGT asset.
• For the purpose of working out a capital loss , those costs are called the reduced cost base of the asset.
One of the main differences is that the costs may be indexed for inflation occurring before 1 October 1999 in working out a capital gain for a CGT asset acquired at or before 11.45 am on 21 September 1999 (which reduces the size of the gain), but not in working out a capital loss .
To work out the cost base and reduced cost base: see Division 110.