• Part C - Instructions for companies, trusts and funds (entities)

    Individuals: if you use the worksheets and need help completing them, read steps 1, 2 and 3 in this part (ignore the word 'entity')

    Read this first

    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

    Are you an individual?

    If you are completing a tax return on behalf of an individual (rather than an entity), read part B.

    If you need help completing the:

    Is your entity a company, trust or fund?

    Read this part.

    Do you expect your entity's total capital gains or total capital losses for the 2009-10 income year to be $10,000 or less?

    Yes

    Work through steps 1 to 3.

    No

    Work through steps 1 to 4. Step 4 will show you how to complete the CGT schedule.

    Introduction

    The instructions in this part 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 on the relevant tax return:

    • Company tax return 2010 item 7
    • Trust tax return 2010 item 21
    • Fund income tax return 2010 item 10
    • Self managed superannuation fund annual return 2010 item 10.

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

    A self managed superannuation fund is a fund with fewer than five members that meets the requirements of section 17A of the Superannuation Industry (Supervision) Act 1993.

    The labels to complete at these items on your entity's tax return are:

    • G Did you have a CGT event during the year?
    • A Net capital gain

    You will also need to complete V Net capital losses carried forward to later income years at the Losses information item on your entity's tax return.

    The relevant item number on each tax return is:

    • Company tax return 2010 item 12
    • Trust tax return 2010 item 27
    • Fund income tax return 2010 item 13
    • Self managed superannuation fund annual return 2010 item 13.
    Attention

    New terms

    We may use some terms that are new to you. These words are explained in Definitions. Generally, they are also explained in detail in the section where they first appear.

    Entity

    The term 'entity' is used to describe a company (including a head company of a consolidated group), a trust and a fund in this part of the guide.

    End of attention

     

    Worksheets

    The worksheets provided at the back of this guide are the:

    • Capital gain or capital loss worksheet (PDF, 96KB) (to calculate the capital gain or capital loss from each CGT event)
    • CGT summary worksheet (PDF, 210KB) for 2010 tax returns (to calculate the net capital gain for the 2009-10 income year or net capital losses carried forward to later income years and to complete the CGT labels on the 2010 tax return).

    You can print out the worksheets and complete them as you work through this part.

    The worksheets are optional and your entity may prefer to use a different worksheet or a computer-based alternative. We have used these worksheets throughout this part of the guide as examples to help you complete the capital gains item on your entity's tax return, and a CGT schedule if this is required.

    CGT schedule

    Your entity must complete this schedule for the 2009-10 income year if the:

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

    If your entity is required to complete a CGT schedule, you must attach it to your entity's 2010 tax return.

    In the worksheets and CGT schedule at the back of this guide, 'current year capital gain' (CYCG), 'current year capital losses' (CYCL) and 'prior year net capital losses' (PYNCL) refer to 'current income year' and 'prior income year'.

    Attention

    Consolidated groups 

    If a group consolidates during the income year, the head company must lodge a CGT schedule if the total capital gains or total capital losses that it makes (as head company of the consolidated group and while not a member of a consolidated group) are greater than $10,000.

    An entity that has joined a consolidated group or groups during the year of income as a subsidiary member must lodge a CGT schedule covering any periods of non-membership if the entity satisfies the requirements for lodgment of that schedule.

    Detailed information on the operation of consolidation is available on our website.

    End of attention 
    Last modified: 10 Sep 2010QC 28058