Print out the example worksheet so you can refer to it as you follow this example.
Jonathan owned 2,000 PBL shares (in two parcels) at the time of the restructure. The acquisition date and cost base (and reduced cost base) of each parcel at the time of the restructure was:
- parcel 1, acquired 14 December 2002, 1,000 shares, cost base (and reduced cost base) just before the restructure $21,000
- parcel 2, acquired 8 March 2003, 1,000 shares, cost base (and reduced cost base) just before the restructure $22,000
Jonathan chose the PBL standard option and cannot choose scrip-for-scrip rollover.
Section 1: Details of your PBL shares
In columns 2, 3 and 4 Jonathan enters the acquisition date, the number of shares in each parcel and the cost base of each parcel respectively.
Section 2: Capital gain or capital loss
Column 5: Number of Crown shares received
As Jonathan chose the standard option, he received one Crown share for each of his PBL shares. He enters 1,000 shares in column 5 for each parcel.
Column 6: Value of your Crown shares?
Jonathan works out the value of the Crown shares for each parcel:
parcel 1: 1,000 x $17.59 = $17,590
parcel 2: 1,000 x $17.59 = $17,590
Column 7: How much cash did you receive?
Jonathan received $3.00 for every PBL share he owned. In column 7, he enters $3,000 ($3.00 X 1,000 shares) for each parcel.
Column 8: How much did you receive altogether (total value)?
Jonathan works out how much he received for each parcel:
parcel 1: $3,000 + $17,590 = $20,590
parcel 2: $3,000 + $17,590 = $20,590
He enters these amounts in column 8.
Column 9: Capital gain or capital loss amount
Step 1: For each parcel, Jonathan works out whether he made a capital gain:
parcel 1: $20,590 - $21,000 = -$410
parcel 2: $20,590 - $22,000 = -$1,410
Jonathan's results are negative so he hasn't made a capital gain. He goes to step 2 to see whether he has made a capital loss.
Step 2: Jonathan's reduced cost base for each parcel is the same as his cost base.
parcel 1: $20,590 - $21,000 = -$410
parcel 2: $20,590 - $22,000 = -$1,410
The results are negative, so Jonathan has made a capital loss on both parcels. He skips column 10 and goes to section 3.
Section 3: Cost base of your Crown shares
Column 11: Acquisition date
This is a pre-filled column.
Column 12: Number of Crown shares received
Jonathan copies the figures from column 5 into this column.
Column 13: Cost base of your Crown shares
Jonathan enters the cost base for each parcel of Crown shares:
1,000 x $13.89 = $13,890
Section 4: Cost base of your CMH shares
Column 14: Acquisition date
This is a pre-filled column
Column 15: Number of shares
Jonathan received one CMH share for each Crown share he owned. He copies the figures from column 12 to this column.
Column 16: Cost base of shares
Jonathan works out the cost base for each parcel of CMH shares and enters the result in 16:
1,000 x $3.70 = $3,700