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  • A Net capital gain

    Did the SMSF have a net capital gain?

    The SMSF’s net capital gain is the total capital gain for 2018–19 less:

    • any 2018–19 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 Appendix 2: Forestry managed investment schemes)
    • the amount of capital gain previously deferred under the Transitional CGT relief.

    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.

    Example: Capital gains tax

    In 2018–19, 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
    Last modified: 03 Oct 2019QC 58668