Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p28
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 28/34)
Character Range: 1731002–1733555

Note: Most of the exceptions are in Division 104. You will find most of the possible exemptions in Division 118. The small business relief provisions are in Division 152.

Some exemptions are limited
 (3) Take the family home for example. Generally, you are exempt from CGT when you make a capital gain on disposing of your main residence.
  But this can change depending on how you came to own the house and what you have done with it. For example, if you rent it out, you may be liable to CGT when you sell it.
For the limits on the general exemption of your main residence:
see Subdivision 118‑B.

100‑33  Can there be a roll‑over?
 (1) Roll‑overs allow you to defer or disregard a capital gain or loss from a CGT event. They apply in specific situations. Some require a choice (for example, where an asset is compulsorily acquired: see Subdivision 124‑B) and some are automatic (for example, where an asset is transferred because of marriage or relationship breakdown: see Subdivision 126‑A).
 (2) There are 2 types of roll‑over:
 1. a replacement‑asset roll‑over allows you to defer a capital gain or loss from one CGT event until a later CGT event happens where a CGT asset is replaced with another one;
 2. a same‑asset roll‑over allows you to disregard a capital gain or loss from a CGT event where the same CGT asset is involved.
Note: The replacement‑asset roll‑overs are listed in section 112‑115, and the same‑asset roll‑overs are listed in section 112‑150.

Step 2—Work out the amount of the capital gain or loss

100‑35  What is a capital gain or loss?
  For most CGT events:
• You make a capital gain if you receive (or are entitled to receive) capital amounts from the CGT event which exceed your total costs associated with that event.
• You make a capital loss if your total costs associated with the CGT event exceed the capital amounts you receive (or are entitled to receive) from the event.

100‑40  What factors come into calculating a capital gain or loss?

Capital proceeds
 (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