• Part A: Total current year capital gains
    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

    In part A you show your entity's total current year capital gains.

    Part A1: Current year capital gains (other than capital gains from collectables)

    Note-What to include and exclude

    You generally do not include any capital gain to which an exemption (for example, the small business 15-year exemption) or exception applies.

    However you must include in the Active assets columns, capital gains for which your entity may be exempt because it is entitled to one or more of the:

    • small business 50 per cent active asset reduction
    • small business retirement exemption
    • small business roll-over.
     

    At A to I and M to U on the worksheet, show the current year capital gains (other than from collectables) transferred from the Capital gain or capital loss worksheets.

    Trust capital gains

    You must also include at G to I and S to U on this worksheet any distribution from a trust of a net capital gain from a CGT event (other than one involving a collectable) that your entity is entitled to.

    You must use the same method as the method used by the trustee to calculate your entity's capital gain from the trust. For example, if the trustee used the discount method to calculate a capital gain, you must use the same method. In some cases your entity must gross up the amount of the trust capital gain. If this applies, you include the grossed-up amount at H, S, T, and U, as explained below.

    If the trustee used the discount method to calculate a capital gain, you need to gross it up by multiplying the distribution amount by 2. You include the result at H. Grossing up ensures that any capital losses your entity has made are deducted from your entity's grossed-up capital gain before the CGT discount is applied.

    If the trust's capital gain was reduced by the small business 50 per cent active asset reduction, again it needs to be grossed-up by multiplying the distribution amount by 2. Include the result at S or U.

    If the trust's capital gain was reduced by the CGT discount and by the small business 50 per cent active asset reduction, multiply the distribution amount by 4 and include the result at T.

    Amount of capital gain

    Show the full amount of all capital gains in part A1. Do not show the amount remaining after applying:

    • capital losses (which are applied on page 4 of the worksheet at part D).
    • the CGT discount (which is applied on page 6 of the worksheet at part F) or
    • the CGT small business concessions (which are applied on page 7 of the worksheet at part G).

    Once you have completed part A1, transfer the amounts at A1 to A6 to the corresponding A1 to A6 in partA3 of the CGT summary worksheet.

    Part A2: Capital gains and capital losses from collectables

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    Did your entity make a capital gain or a capital loss from a collectable during the income year? Or did the entity receive a distribution from a trust during the income year that includes a net capital gain from a collectable?

    NO

    Go to part A3

    YES

    Read on

    Transfer any capital gains and capital losses from collectables from the Capital gain and capital loss worksheets to C1, C2, C3 or C4 on your CGT summary worksheet.

    If your entity was entitled to a distribution of a net capital gain from a trust resulting from a collectable, show this amount at C5 to C7. You must use the same method as the trustee to calculate your entity's capital gain from the trust. For example, if the trustee used the discount method to calculate a capital gain, you need to do the same and show the grossed up amount at C6.

    If the trustee used the discount method to calculate a capital gain, you gross it up by multiplying the distribution amount by 2. Grossing up ensures that any capital losses your entity has made are subtracted from your grossed-up capital gain before the CGT discount is applied.

    The totals of all of your entity's capital gains from collectables are shown at C8 to C10.

    Step A2.1: Deduct any current year capital losses (CYCL) from collectables from current year capital gains (CYCG) from collectables

    If your entity has any current year capital losses from collectables, deduct these from any current year capital gains from collectables. This reduces your CGT obligation. If your entity has current year capital losses from collectables that can be deducted they must be deducted here. You cannot choose to defer to a later year any amount that can be deducted this year.

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    Does your entity have any current year capital gains from collectables?

    NO

    Transfer the amount at C4 to H in part I and then go to part A3

    YES

    Does your entity have a current year capital loss from a collectible?

    NO

    Transfer the amounts at C8, C9 and C10 to 1E, 1F and 1G and then go to step A2.2

    YES

    Read on

    Deduct any current year capital losses from collectables (shown at C4) from your current year capital gains from collectables (shown at C8 to C10). You can do this in the order that gives the best result, which would usually be to apply the losses against:

    1. capital gains calculated using the 'other' method, then
    2. capital gains calculated using the indexation method, then
    3. capital gains calculated using the discount method.

    Show the amounts deducted from capital gains from your collectables at 1A to 1C, depending on the choice made about how to deduct the losses. The total losses from collectables deducted from gains from collectable are shown at 1D.

    Show any remaining capital gains from collectables at 1E to 1G.

    If your entity has any unapplied current year capital loss from collectables (C4 minus 1D), you can carry this forward to reduce the capital gains from collectables in later income years. Transfer the amount of unapplied current year capital losses from collectables to H-UNCL from collectables in part I.

    Step A2.2: Apply any prior year net capital losses (PYNCL) from collectables

    If your entity has prior year net capital losses that can be deducted, they must be deducted here. You cannot choose to defer to a later year any amount that can be deducted this year.

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    Does your entity have any remaining current year capital gains from collectables?

    NO

    If your entity has prior year net capital losses (PYNCL), complete 2A, 2B and 2C, and transfer the amount at 2C to H in part I. Go to part A3.

    YES

    Does your entity have a prior year net capital loss from collectables?

    NO

    Transfer the amounts at 1E,1F and 1G in step A2.1 to J,K and L in part A3 and continue on from part A3.

    YES

    Read on

    At 2C, show the available prior year net capital losses from collectables after you have made any necessary adjustments for commercial debts forgiven shown at 2B. For more information on commercial debts forgiven, see chapter 1-Debt forgiveness and refer to your entity's tax return instructions.

    Again, prior year net capital losses from collectables can be deducted from any remaining capital gains from collectables in the manner that produces the best result. They must however be deducted in the order in which they were made-for example, a 1995-96 year capital loss should be deducted before a 1998-99 year capital loss.

    At 2D to 2F, show the amounts of prior year net capital losses (PYNCL) from collectables in the order you have chosen.

    At 2G, show the total amount of prior year net capital losses from collectables that have been deducted from the current year capital gains from collectables.

    At J, K and L in step A2.2, show the capital gains from collectables after you have applied the current year capital losses and prior year net capital losses from collectables.

    You can carry forward any unapplied net capital losses from collectables (2C minus 2G) but in later income years you can only use them to reduce any capital gains from collectables (not from other CGT events).

    When you have completed step A2.2, transfer:

    • the amounts at J, K and L to the corresponding labels in part A3 and
    • the amount of unapplied prior year net capital loss from collectables (referred to above) to H-UNCL from collectables in part I (together with any unapplied current year capital losses from collectables at step A2.1).
    Part A3: Total current year capital gains (CYCG)

    At A3, show the total of your entity's capital gains, including any net capital gain from collectables.

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    Your entity may not have any of the following losses:

    • current year capital losses
    • prior year net capital losses
    • capital losses transferred in.
     

    In this case, transfer the amounts at A7 to A12 in part A3 to A to F in part E and continue on from part F.

    If your entity has one or more of these losses, read on.

    Last modified: 06 Oct 2009QC 27417