Question on Trust Capital Gain & Revenue Loss Treatment in SMSF

Ask an Accountant
1

Can anyone please help me out with this?

The trust has:

  • Gross capital gain: $51,000

  • Revenue loss: $8,000

  • Cash distribution to SMSF: $43,000

Am I right to process this in the SMSF as follows?

  • Gross capital gain: $51,000 — recorded as the total gain before any discounts

  • Revenue loss: ($8,000) — Tax Exempted Amounts, as this cannot be deducted against the gain in the SMSF

  • SMSF CGT discount: ($17,000) — apply the SMSF 1/3 discount ($51,000 ÷ 3)

  • Net taxable capital gain: $34,000 — amount included in the SMSF’s assessable income

Thanks

2

Hi Iris, Based on your limited information here the calculations looks correct. I highly recommend to check with an SMSF accountant as other transactions in the fund may affect the assessable income.