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  • Records to keep

    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

    The tax-deferred and tax-free amounts Ilena received are not included in her income nor her capital gain, but the tax-deferred amount affects the cost base and reduced cost base of her units in XYZ Managed Fund for future income years. The tax free amount affects her reduced cost base.

    Ilena deducted $10 capital losses from her grossed up capital gain before she applied the CGT discount of 50%. In effect, $5 of the tax deferred amount was offset against her capital losses. So she reduces the tax deferred amount by $5 and deducts the remainder ($110) from the cost base and reduced cost base of her units as follows:

    Cost base

    $5000

    less tax-deferred amount

     $110

    New cost base

    $4890

    Reduced cost base

    $4700

    less tax deferred amount ($110) + tax free amount ($35)

     $145

    New reduced cost base

    $4555

    Last modified: 06 Oct 2009QC 16182