Capital Gains Tax Workpapers - Foreign/Temporary Resident Individual

Home Page


Enter client's information on the Home page, including the entity type.


Index Page


Add the CGT Event, Cost Base and Non Resident Individuals Discount worksheets for each CGT event on the Index page. Ensure the name/description of the CGT event has been entered on the Index page to flow through to each worksheet.



 CGT Event, Cost Base and Non Resident Individuals Discount worksheet


Complete the CGT event details section of the CGT Event, Cost Base and Non Resident Individuals Discount worksheet. 


The CGT event description is automatically selected from the name on of the event on the Index page.


Where a capital gain is partially exempt (for example the client is eligible for the partial main residence exemption), enter the % of the capital gain or loss which is subject to capital gains tax in the CGT Event Details section.


Complete the elements of the cost base or reduced cost base in the First element - Fifth element sections of the worksheet as required..



CGT discount for foreign/temporary resident individual section


Discount testing period 


Enter the discount testing period start date and end date in cells L207 and L208 noting the different scenarios below:


Owner of the Asset
Discount testing period
Individual
The discount starting period starts on the day the individual acquired the asset and ends on the day of the CGT event.
Individual interest held in a fixed trust
The discount testing period starts on the most recent day the individual became a beneficiary of the trust and ends on the day the individual made the gain (generally the last day of the trust's tax year).            
The individual is a beneficiary of a non-fixed trust and the relevant trust gain
  • is made because a CGT event happened in relation to a CGT asset acquired by the trustee of the non-fixed trust, or
  • is referable (either directly or indirectly through one or more interposed trusts that are not fixed trusts) to a capital gain made by the trustee of another trust that is not a fixed trust because a CGT event happened in relation to a CGT asset acquired by that trustee.
The discount testing period starts on the day of that acquisition and ends on the day the individual made the gain (generally the last day of the trust's tax year).

The individual is a beneficiary of a non-fixed trust and the relevant trust gain is referable (either directly or indirectly through one or more interposed trusts that are not fixed trusts) to a capital gain made by a fixed trust.
The discount testing period started on the most recent day that the trust whose capital gain is directly referable to the capital gain made by the fixed trust became a beneficiary of the fixed trust and ends on the day the individual made the gain (generally the last day of the year, for the trust of which the individual is a beneficiary).


Residency


Answer the residency status questions in rows 211 - 212 and complete the foreign/temporary resident start and end period in rows 214 - 221.


Discount Method


If the CGT asset was acquired before 8 May 2012 and the individual was a foreign/temporary resident on 8 May 2012, the discount percentage is calculated using the "apportioning method" unless the taxpayer chooses to use the "market value" method.


If you want to use the market value method, enter both the market value and the cost base of the CGT asset at 8 May 2012.


To calculate the cost base at 8 May 2012, you must assume a CGT event happened to the asset on that day (ITAA 1997 s 110-25(12)). This means you must account for all cost base modification as at 8 May 2012. For deductible expenditure, such as capital works deductions (special building write-off) on income producing buildings, you may need to exclude from cost base the deduction claimed up to 8 May 2012. This will depend on the dates that the asset was originally acquired and the expenditure was incurred. See the notes under each element of cost base in the worksheet.


The worksheet will compare the result under the market value method with the default calculation under the apportionment method and select the method that gives the greater discount. The CGT discount percentage will be transferred to the Index page.


Repeat the above steps on a separate CGT Event, Cost Base and Non Resident Individuals Discount worksheet for each CGT event. Once a worksheet has been completed for all CGT events, the Index page can be completed.


Index Page


For each CGT event, consider which method will provide the best result and select the chosen method in the Select Method column. Once the method has been selected, click the Refresh Summary button to show the capital gain/loss amount for each CGT event. Enter small business concessions in column Y where applicable.


The total capital gains/losses and reconciliation of losses are displayed in the Total capital gains & reconciliation of losses section.



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