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Super gains & losses - CGT

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Rob G., 26th Apr, 2008.

  1. Rob G.

    Rob G. Well-Known Member

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    6th Jun, 2007
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    717
    Location:
    Melbourne, VIC
    Can't find a clear answer on this one and don't wish to use up one of my limited free calls to a specialist as it is really curiosity, so I'll ask here out of interest ...

    s.295-85 ITAA97 acts as a "primary code" for complying super funds "gains and losses".

    Therefore, would this overrule, say, s.26BB(2) Gain on disposal or redemption of a traditional security held.

    In the context of a SMSF, this would normally be considered on the capital account anyway, and only the statutory provision makes it income.

    Cheers,

    Rob
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Location:
    Sydney, NSW
    Hi Rob,

    You may want to speak to your accountant to clarify this.

    Cheers,

    Dan

    PS If your accountant is not a SMSF specialist, speak to one who is.
     
  3. DaveA

    DaveA Well-Known Member

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    Location:
    Sydney, NSW
    Its great to trot out the "speak to your accountant line" but unfortunately Rob is an accountant, and a fairly informative one judging by the majority of his posts...

    The only person on this forum who i would say would have enough of an idea to know would be NickM but being so busy he rarely gets on here...

    Alternatively, could you apply for a private ruling just to see the response?
     
  4. Jacque

    Jacque Team InvestEd

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    I'm sure MattR would be able to help, as he's a savvy accountant who frequents here. Maybe send him a PM if he doesn't see this in the next few days?
     
  5. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Found the answer ... thought it was too good to be true.

    It is really limited in a similar way to individuals being deemed not to be traders.

    Quoting from the act:

    Exceptions

    295-85(3)

    The provisions referred to in subsection (2) can apply to the *CGT event if:


    (a) any *capital gain or *capital loss from the event is attributable to currency exchange rate fluctuations; or


    (b) the *CGT asset is one of these:


    (i) debenture stock, a bond, *debenture, certificate of entitlement, bill of exchange, promissory note or other security;

    (ii) a deposit with a bank, building society or other financial institution;

    (iii) a loan (secured or not);

    (iv) some other contract under which an entity is liable to pay an amount (whether the liability is secured or not).

    Cheers,

    Rob