Step 3 How to complete the capital gains item on your entity’s tax return

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

In the earlier steps, you calculated your capital gain or capital loss for each CGT event, then worked out your net capital gain or net capital loss.

Print X in the Yes box at G Did you have a capital gains tax event during the year? at the capital gains item on your entity’s tax return.

Exemptions and rollovers

If you applied an exemption or rollover, print X in the Yes box at M Have you applied an exemption or rollover? at the capital gains item on your entity’s tax return. If you are lodging by paper print in the code box at M the code that represents the CGT exemption or rollover that produced the largest amount of capital gain or capital loss deferred or disregarded.

If you are lodging electronically, follow the instructions on screen.

CGT exemption and rollover codes:

• A Small business active asset reduction
• B Small business retirement exemption
• C Small business rollover
• D Small business 15 year exemption
• E Foreign resident CGT exemption
• F Scrip for scrip rollover
• G Inter-company rollover
• H Demerger exemption
• J Capital gains disregarded as a result of the sale of a pre-CGT asset
• K Disposal or creation of assets in a wholly-owned company
• L Replacement asset rollovers
• M Exchange of shares or units
• N Exchange of rights or options
• O Exchange of shares in one company for shares in another company
• P Exchange of units in a unit trust for shares in a company
• Q Disposal of assets by a trust to a company
• R Demerger rollover
• S Same asset rollovers
• X Other exemptions and rollovers.

If your entity is required to complete a CGT schedule, you may also need to provide details of certain exemptions or rollovers applied at item 8 of that schedule.

If you or your entity receive an amount of capital gains from a trust and the trust applied an exemption or rollover to that capital gain, you do not need to report the exemption or rollover on your income tax return at M Have you applied an exemption or rollover? The trust will report the exemption or rollover on its own tax return.

Net capital gain

Transfer the amount at 6A in part 6 of your entity’s CGT summary worksheet to A Net capital gain on your entity’s tax return

Losses information

Add the amounts, if any, at 3A in part 9 and 3B in part 3 of your entity’s CGT summary worksheet and write the total amount at Losses information, V Net capital losses carried forward to later income years on your entity’s tax return.

Foreign resident capital gains withholding payments

The foreign resident capital gains withholding regime can apply in the 2016 income year to foreign residents with a 2016 income tax year ending after 30 June 2016, in relation to contracts entered into on or after 1 July 2016. Where a foreign resident entered a contract to dispose of taxable Australian property on or after 1 July 2016, and the purchaser withheld such amounts, the foreign resident is entitled to claim a credit in their tax return when this amount has been paid. The ATO will advise the foreign resident of receipt of the withholding from the purchaser. For 2016, there is no place on the tax return form for the foreign resident can claim the credit for the foreign resident withholding that has been paid.

To claim the credit:

• On a separate sheet of paper, provide details from the confirmation receipt you received from the ATO showing that the foreign resident capital gains withholding has been paid.
• Write "Attachment" at the top of your tax return.
• Send the attachment with your tax return form.