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Prior year loss then current year capital gain in SMSF

Discussion in 'Accounting, Tax & Legal' started by notanaccountant, 2nd Sep, 2009.

  1. notanaccountant

    notanaccountant New Member

    Joined:
    1st Sep, 2009
    Posts:
    2
    Location:
    Sydney NSW
    Hi
    Hoping someone can understand my problem and help me.
    I have been running my SMSF for 18 months and have attempted my tax and reporting myself this year. (I've finally balanced to the last cent so feeling pretty pleased with myself!)
    I have a question about the following situation:
    Last year a share holding was shown as having a loss.
    This year I sold it for a capital gain, which I have calculated against the cost base.
    Given that the written down value was already included in last year's Fund valuation, and the capital gain is shown such for this year, how do I show the "make up" amount from last year's loss?
    Is it a change in asset value even though I no longer hold the asset? Or ??

    thank you.
     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    For financial reporting, you usually show this as a "realised gain" over the carrying amount from end of last FY.

    This has no relation to the capital gain for tax purposes, which uses historical cost.

    Cheers,

    Rob
     
  3. notanaccountant

    notanaccountant New Member

    Joined:
    1st Sep, 2009
    Posts:
    2
    Location:
    Sydney NSW
    many thanks