# I had a bank loan for the land and paid a fair amount of interest over the years, is the interest paid used to offset capital gain?
yes.
# Are any capital losses due to shares sold able to offset capital gain on the land? (i have losses brought forward over the years from share invesments)
yes.
# Are the council rates/water charges i paid over the years used to offset capital gain?
(4) The third element is the costs of owning the * CGT asset you incurred (but only if you * acquired the asset after 20 August 1991). These costs include:
(a) interest on money you borrowed to acquire the asset; and
(b) costs of maintaining, repairing or insuring it; and
(c) rates or land tax, if the asset is land; and
(d) interest on money you borrowed to refinance the money you borrowed to acquire the asset; and
(e) interest on money you borrowed to finance the capital expenditure you incurred to increase the asset's value.
Working out your net capital gain
Step 1. Reduce the * capital gains you made during the income year by the * capital losses (if any) you made during the income year.
Step 2. Apply any previously unapplied * net capital losses from earlier income years to reduce the amounts (if any) remaining after the reduction of * capital gains under step 1
Step 3. Reduce by the * discount percentage each amount of a * discount capital gain remaining after step 2 (if any).
