The years are correct but I've simplified the dollars. An asset was acquired in May 2000 for $1000 including costs. The asset was sold in May 2014 for $5000 after costs. It appears that the best method of calculating CGT is the discount one. So, $5000 less $1000 = $4000/2 for 50% = $2000 CG. This is then applied to previous capital loss.
However, I am advised differently: $5000 less $1000 = $4000 CG, and this is applied to cap loss. This advice is from an accountant.
Advice is sought. Is the first method correct, the second, both, or is there another way? Many thanks.
However, I am advised differently: $5000 less $1000 = $4000 CG, and this is applied to cap loss. This advice is from an accountant.
Advice is sought. Is the first method correct, the second, both, or is there another way? Many thanks.