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# A Net capital gain

Last updated 29 March 2021

## Did the SMSF have a net capital gain?

The SMSF’s net capital gain is the total capital gain for 2017–18 less:

• any 2017–18 capital losses
• any prior year net capital losses, and
• any other relevant CGT discount or concession.
 No Leave A blank. Yes Print at A the SMSF's net capital gain.

Show at A the amount of net capital gain calculated or transferred from:

• 6A at part 6 of the CGT summary worksheet
• A at part 6 of the CGT schedule, if any.

When working out the SMSF's net capital gain, include:

• net foreign source capital gains
• the capital gains component of the SMSF's share of net income from a trust
• the capital gains component of the SMSF's share of a distribution from a partnership
• capital gains made by the SMSF from a forestry managed investment scheme (see Forestry managed investment schemes).

If you include an amount at A that is exempt current pension income, include it also at Y Exempt current pension income.

## Non-arm's-length capital gains

A net capital gain from the sale of an asset by the SMSF is non-arm's-length income if, for example, the asset:

• was sold to a related party for more than the asset’s market value, or
• was originally acquired from a related party for less than the asset’s market value.

Complying SMSFs do not include non-arm's-length net capital gains at A. Show these at Non-arm's-length income items U2 or U3.

To calculate the SMSF’s net capital gain, see Capital gains tax.

Start of example

Example: Capital gains tax

In 2017–18, SMSF A sold a house for \$500,000. It bought the house for \$470,000 in 2012. Its capital gain from this sale using the discount method (see Capital gains tax) is \$20,000.

SMSF A reports:

G Did you have a capital gains tax (CGT) event during the year? Yes

M Have you applied an exemption or rollover? No

A Net capital gain \$20,000

End of example

QC55254