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  • Step 2-Gross up any discounted capital gain you have received

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If the fund has applied the CGT discount to your distribution, this is known as a discounted capital gain.

    You need to gross up any discounted capital gain distributed to you by multiplying the gain by two. This enables you to reduce your grossed-up capital gain by your capital losses and then later discount the reduced gain.

    Example

    Tim received a distribution from a fund that included a discounted capital gain of $400. Tim's statement says that only the CGT discount of 50% has been applied.

    Tim grosses up the capital gain to $800 (that is, $400 x 2).

    Handy hint

    If the managed fund has also shown the grossed up amount of the discounted capital gain on your distribution statement, you can use that amount.

    Last modified: 06 Oct 2009QC 16182