• Introduction

    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

    These instructions are designed to help companies, trusts and funds (your entity) to calculate a capital gain or capital loss and to complete the capital gains items in the relevant tax return. This will be the:

    • Company tax return 2001 (item 6)
    • Trust tax return 2001 (item 17), or
    • Fund income tax and regulatory return 2001 (item 9).

    Funds include superannuation funds, approved deposit funds and pooled superannuation trusts.

    The labels to complete in these items are:

    • label G-Did you have a CGT event during the year?
    • label A-Net capital gain, and
    • (if you are an individual) label H-Total current year capital gains.

    You will also need to show your net capital losses carried forward to later income years at label V in the relevant item number for your entity's tax return. These are:

    • Company tax return 2001-item 8 (losses information)
    • Trust tax return 2001-item 23 (losses information), or
    • Fund income tax and regulatory return 2001-item 10 (losses information).

    Note
    New terms

    There may be terms in part C that are not familiar to you. Refer to chapter 1 in part A or to the Explanation of terms in this guide.

    Note
    Entities

    The term 'entities' is used to describe companies, trusts and funds in this part of the guide.

    Worksheets

    The steps in section 1 of part C explain how to calculate the net capital gain or net capital loss made by your entity for the 2000-01 income year.

    The sample worksheets provided in this guide are the Capital gain or loss worksheet (to calculate the capital gain or capital loss from each CGT event) and the CGT summary worksheet (to calculate the net capital gain or net capital loss). You can print out the worksheets and complete them as you work through this part.

    The Capital gain or loss worksheet calculates a capital gain or capital loss made by the entity for each CGT event. The CGT summary worksheet calculates the net capital gain or net capital loss made by the entity and explains how to complete the CGT labels in the 2000-01 tax return.

    The worksheets in section 1 are optional and your entity may prefer to use a different worksheet or a computer-based alternative. We have used these sample worksheets throughout this part of the guide as examples to help you complete the capital gains item in your entity's tax return-and a Capital gains tax (CGT) schedule 2001 (CGT schedule) if this is required. Your entity must complete this schedule for the 2000-01 income year if:

    • the total current year capital gains are greater than $10 000, or
    • the total current year capital losses are greater than $10 000.

    Sign post

    If these thresholds do not apply to your entity, go to section 1 in this part of the guide for instructions on how to complete the capital gains item in your entity's tax return using the two worksheets. If you are not sure whether these thresholds apply to your entity, section 1 should give you the information you need.

    Note
    Individuals

    If you are an individual taxpayer, you may also use the worksheets in this guide and the related instructions in section 1 to calculate your net capital gain or net capital loss. As an individual, you are not required to complete a CGT schedule when lodging a paper return, regardless of the amount of your capital gains or capital losses.

    CGT schedule

    If the $10 000 threshold applies to your entity, you need to complete a Capital gains tax (CGT) schedule 2001 (CGT schedule). The CGT schedule replaces several return form labels used in past tax returns.

    If your entity is required to complete a CGT schedule, you attach it to your entity's 2000-01 tax return.

    Go to section 2 in this part of the guide for instructions on how to complete the capital gains item in your entity's tax return using the two worksheets and the CGT schedule.

    Last modified: 31 Aug 2010QC 16195