CGT Property/Business workpaper

The CGT Property/Business workpaper calculates the capital gain or loss when a property or business asset is disposed of. It applies any exemptions, discounts and concessions, then allocates the result to the owners and sends it to the CGT Summary.

Two calculations

The workpaper holds two separate calculations, Property/Business 1 and Property/Business 2. They are calculated independently.

Asset and purchase details

Record:

• Purchasing entity per contract

• Asset detail

• Address

• Purchase price

• Contract date and settlement date

Cost base

The cost base schedule includes:

• Stamp duty

• Legal fees

• PEXA settlement fee

• Registration of transfer

• Conveyancing fee

• Agent fees/commission

• Title search/search fee

• Other costs

• Plant & equipment on purchase

You can add extra rows where needed. Amounts that reduce the cost base are clearly marked as Less (negative) adjustments.

Cost Base = Purchase Price + Purchase Costs – Reductions

Sale details

Record:

• Contract date and settlement date

• Sale price

• Plant & equipment deductions

Sale costs include legal fees, mortgage release fee, agent's commission, conveyancing fees, marketing costs, capital improvements, capitalised ownership costs, title search/search fee and PEXA settlement fee.

Calculation

• Net Proceeds = Sale Price – applicable Plant & Equipment amount

• Gross Capital Gain/(Loss) = Net Proceeds – Cost Base

The following are then applied where relevant:

• Principal Place of Residence (PPR) exemption: select whether the asset qualifies and enter the PPR percentage. The exempt portion is calculated from that percentage.

• 50% general CGT discount: indicate whether the asset was held for more than 12 months. If it qualifies, the discount is applied.

• Small business CGT concessions: the 15-year exemption, active asset exemption and retirement exemption. Any concession reduces the capital gain.

The result is the Net Capital Gain/(Loss).

Ownership and CGT Summary

The final capital gain or loss is allocated to the owners by ownership percentage. It flows to the CGT Summary as Discounted Gross, Other or Loss.

How to access

• Go to Jobs and open the relevant job.

• Click the Workpapers icon or navigate to Job Results then Workpapers.

• Select CGT Property/Business on the Workpapers Dashboard.