The indexation method increases each amount included in an element of the cost base (other than the costs of owning the asset) by an indexation factor. The indexation factor is calculated using the consumer price index (CPI). You can use the indexation method to calculate your capital gain if: If you are not a company and you meet the criteria above, and you want to use the indexation method, you may choose to do so, otherwise the discount method will apply. If you are a company (other than a listed investment company) and the capital gains gain meets the criteria above, you must use the indexation method to calculate the capital gain. There are some exceptions to the requirement that you must have owned an asset for at least 12 months for indexation to apply. You can use the indexation method if you: acquired a capital gain tax asset as a legal personal representative or a beneficiary of a deceased estate. The 12-month requirement is satisfied if the deceased acquired the asset 12 months or more before you disposed of it. acquired an asset as the result of a marriage or relationship breakdown. You will satisfy the 12-month requirement if the combined period your spouse and you owned the asset is more than 12-months.
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