Query re MyTax CGT module

Discussion in 'Accounting & Tax' started by Coolcup, 31st Aug, 2020.

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  1. Coolcup

    Coolcup Active Member

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    Hi everyone

    A quick question regarding the CGT worksheets on the ATO tax return portal through mygov.

    Say I have bought two lots of ABC:

    Lot A – I paid $1,000 for 1000 shares more than 1 year ago
    Lot B – I paid $1,000 for 1000 shares less than 1 year ago
    I received a capital return on both lots totalling $500
    I then sold both lots for $2500.

    When I input these into the CGT worksheet, do I need to put them in as two separate securities and allocate the capital return and sale proceeds to each on a pro rata basis so the CGT and CGT discount is calculated properly, or is the calculator smart enough to figure it out if I input them as one security calculation only with different dates for the increase in cost base as a result of the acquisition of Lot B?
     
  2. maroon

    maroon Well-Known Member

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    I find their CGT calculation tool irritating. You don't have to use it - try sharesight and plug the final values into mygov. I ditched my spreadsheet after finding sharesight!
     
  3. Coolcup

    Coolcup Active Member

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    Thanks for the input. I’m looking for advice on how to get this right in mytax, not another tool.
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    You must reasonably apportion the single sale proceeds for each portion. ie based on qty. eg 50/50. You will have a reduced costbase of $750 for each parcel. Then apportion the proceeds on sale 50% each so there is a discount gain of $500 and a non-disc gain of $500. Assuming no other gains or losses a net taxable gain of $750. If current or prior year losses are to be used the loss applies to the $1000 gain prior to any discount
     
  5. Coolcup

    Coolcup Active Member

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    Thanks a lot for the detailed response. This definitely aligns with my thinking. I guess I was also interested to know how to input this into the mytax cgt module. Would it go in as two separate assets being disposed (Reflecting the two lots) or just one?
     
  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Two.
     
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  7. CheckMate

    CheckMate Well-Known Member

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    I think based on the OP's example the net taxable gain should be $375 ($500 total gain for 2 lots - $250 discounted and $250 non-discounted).
     
  8. Coolcup

    Coolcup Active Member

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    Hi CheckMate - thanks for this, you may be missing the capital return of $500 in your calc?
     
  9. Coolcup

    Coolcup Active Member

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    Thanks a lot Paul - always very helpful!
     
  10. CheckMate

    CheckMate Well-Known Member

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    That is correct, my bad.
     
  11. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    No
     

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