If your clients have sold or disposed of shares, there are many types of CGT events you need to consider when completing their tax returns, including buy-backs and mergers.
When lodging your clients’ tax returns, ensure you:
- check the report on Online Services for Agents (OSFA) for ‘Share and unit disposals’
- cross-check the information with your clients to make sure it’s correct
- include pre-CGT disposals at the CGT exemptions and rollovers question and select Capital gains disregarded as a result of the sale of a pre-CGT asset
- include any losses to be carried over in the year they occur.
If your clients ask, remind them they can’t use capital losses to reduce their other income or claim unrealised (‘paper’) losses.
To help your clients understand their obligations, download and share the ATO’s CGT on the sale of shares and units fact sheet with your clients.