Capital Gains Tax is applicable when you sell an asset, such as property and shares. The gain is the difference between what you paid and what you received. This is known as the Gross Capital Gain. If you have held your asset for more than 12 months you are entitled to a further 50% Capital Gains Discount. However, if you have capital losses you can offset these losses against your gain. Your capital gains tax is calculated by first determining your cost base (the amount you paid for the property or asset in question) and the cost of acquiring the asset. This amount comprises the cost of transfer, stamp duty, loan application, any advertising conducted, termination and valuation fees and any professional services used in the process such as conveyancers, brokers, agents etc.