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Step 3 How to complete the capital gains item on your entity’s tax return

Last updated 19 July 2021

In the earlier steps, you calculated your capital gain or capital loss for each CGT event, then worked out your net capital gain or net capital loss.

Print X in the Yes box at G Did you have a capital gains tax event during the year? at the capital gains item on your entity’s tax return.

Exemptions and rollovers

If you applied an exemption or rollover, print X in the Yes box at M Have you applied an exemption or rollover? at the capital gains item on your entity’s tax return. If you are lodging by paper print in the code box at M the code that represents the CGT exemption or rollover that produced the largest amount of capital gain or capital loss deferred or disregarded.

CGT exemption and rollover codes:

If your entity is required to complete a CGT schedule, you may also need to provide details of certain exemptions or rollovers applied at items 5 or 8 of that schedule.

If you or your entity receive an amount of capital gains from a trust and the trust applied an exemption or rollover to that capital gain, you do not need to report the exemption or rollover on your income tax return at M Have you applied an exemption or rollover? The trust will report the exemption or rollover on its own tax return.

Net capital gain

Transfer the amount at 6A in part 6 of your entity’s CGT summary worksheet to A Net capital gain on your entity’s tax return.

Losses information

Add the amounts, if any, at 3A in part 9 and 3B in part 3 of your entity’s CGT summary worksheet and write the total amount at Losses information, V Net capital losses carried forward to later income years on your entity’s tax return.

Foreign resident capital gains withholding payments

Foreign resident capital gains withholding applies to certain transactions entered into on or after 1 July 2016. If an amount has been withheld from you or your entity and paid to the ATO we will advise you of the receipt of the withholding amount. Refer to the instructions for the tax return relevant to you or your entity for information on how to claim the credit for the foreign resident capital gains withholding amount.

QC64895