Capital Gains Tax - Australian Entities

To use the Capital Gains Tax calculator, download the starter file from the Smart Suite website or open from HowNow Knowledge. 

Make sure the date on the Home sheet is the correct year that you wish to calculate the loan for. Also select the relevant Entity Type to ensure any discounts are calculated correctly.

Begin by inserting a 'CGT2 Event and Cost Base' worksheet for each capital gains event in the Capital Gains Events section of the Index. It is recommended that you change the title to the event's name so it can be easily recognised in the dropdown menus on other sheets.

In the worksheet, complete the CGT event details section. The CGT event description is automatically selected from the name of the event on the Index. Dropdown menus are available for the CGT asset type and Which CGT event? fields. Where a capital gain is partially exempt (e.g. the client is eligible for the partial main residence exemption), enter the percentage that is subject to capital gains tax in the matching field.

Complete all the elements of the cost base or reduced cost base in the First element to Fifth element sections of the worksheet as required. Each section has a notes area that can be expanded to explain what each element covers.

The capital gain/loss for each method will be calculated in the CGT event summary section of the worksheet. This will help determine which method produces the least gain.

Repeat the above steps on a separate worksheet for each CGT event. Once a worksheet has been completed for all CGT events, the Index can be completed.

Summary

For each CGT event, consider which method will provide the best result and select the chosen method in the Select method column. Once the method has been selected, click the Refresh Summary button to show the capital gain/loss amount for each CGT event.

Enter any capital gains received from trust distributions and managed funds directly on the Index. Any prior years' capital losses are entered in the top row of the Capital Gains Events section and will need to be applied against the corresponding gains on the Index.

The capital gains discount for individuals and super funds will be calculated automatically. However, any small business concessions will need to be manually entered into the Index sheet.

A summary of the capital gains/losses and a reconciliation of losses is displayed in the Total capital gains & reconciliation of losses section of the Index.

Templates available in the Capital Gains Tax starter

To add other templates into your firm starter file, please see the Smart Workpaper Customisation guides.