Question 18 - Capital gains

See also:        

Capital gains (Individual tax return instructions 2013)

 

Did taxpayer have a capital gains tax event during the year?

Taxpayer may have made a capital gain or capital loss if a capital gains tax (CGT) event happened in 2012-13. 

Taxpayer may have also made a capital gain for 2012-13 if they were a beneficiary of, or had money invested in, a trust (including a managed investment fund) in 2012-13 and the trust made a capital gain during the year.

For most CGT events, taxpayer has made:

·a capital gain if the amount of money and property they received, or were entitled to receive, from the CGT event was more than the cost base of their asset; taxpayer may then have to pay tax on their capital gain
·a capital loss if the amount of money and property they received, or were entitled to receive, from the CGT event was less than the reduced cost base of their asset.

Taxpayer cannot deduct a capital loss from their income, but in most cases it can be used to reduce any capital gain they made in 2012-13.

 

NO

Enter N in the box at Q item 18 if the taxpayer had a capital gains tax event that did not relate to a forestry managed investment scheme interest that the taxpayer held, other than as an initial participant.

YES

Enter Y in the box at Q item 18 if the taxpayer had a CGT event that did relate to a forestry managed investment scheme interest that the taxpayer held, other than as an initial participant.

 

The following publications may assist you in completing this question:

·Capital gains tax (CGT) schedule 2013 (NAT 3423)
·Guide to capital gains tax 2013 (NAT 4151)
·Employee share schemes - answers to frequently asked questions by employees (NAT 7366)
·Personal investors guide to capital gains tax 2013 (NAT 4152)

The above publications can be found in Other publications.

 

YOU NEED TO KNOW

CGT events and CGT assets

There is a wide range of CGT events. The most common CGT event happens when you sell or give away a CGT asset, such as:

·real estate, including the family home, a holiday home, investment property, hobby farm or vacant block of land
·shares
·units in a unit trust or managed investment fund
·forestry managed investment scheme interests (as a subsequent participant)
·collectables, for example, jewellery
·personal use assets

Examples of other CGT events are:

·an asset taxpayer owned was lost or destroyed
·taxpayer received an amount for entering into an agreement, for example, taxpayer agreed not to work in a particular industry for a set period of time
·taxpayer entered into a conservation covenant over land that they owned
·taxpayer received a non-assessable payment from a trust or company.

 

COMPLETING THIS ITEM

Complete labels G, A, H, and V of the item 18 by entering data directly into the tax return or use the worksheet to complete this item. Follow these steps if you choose to use the worksheet:

STEP 1

Click on the item 18 "Capital gains" underlined text to open the Capital gains worksheet.

STEP 2

If you had more than one CGT event then you will need to complete separate worksheets for each of CGT asset. Click on the "New" button to create new entry.

STEP 3

Close the worksheet. Tax Assistant will automatically transfer total amounts to the respective labels of the tax return.