Issue

How to take up Property into the Rollover in Fund, at the market value with the original CGT Date for a Family Law Settlement. 

Resolution

In Class you will need to :

1. Process property purchase events with the original market value
2. Process property disposal events at book cost
3. Use Realised Accounting Gain/Loss to net off the Capital Loss
4. Process property purchase events at book cost
5. Set up depreciation worksheet to record the original CGT date

Worked Example

Property with a cost price of $1m and a market value of $1.5m has been rolled into the Fund. The rollover in date is 01 January 2020. The original purchase date is 01 March 2015.

Step 1: Process property purchase events with the original market value

Navigate to Fund Level > Transactions > Investment - Buy > Property Purchase Deposit and Property Purchase Settlement

Step 2: Process property disposal events at book cost

Navigate to Fund Level > Transactions > Investment - Sell > Property Sale Deposit and Property Sale Settlement

Dispose of the property on the following day, due to Class restriction.

Step 3: Use Realised Accounting Gain/Loss to net off the Capital Loss

1. Set up a Custom holding Account, as below (or use the custom holding account setup for Family Law Settlement: How to take up Investments in the Rollover in Fund)
   
   
2. Take up the different using Realised Accounting Gain/Loss event
   
   

Step 4: Process property purchase events at book cost

Navigate to Fund Level > Transactions > Investment - Buy > Property Purchase Deposit and Property Purchase Settlement

Step 5: Set up Depreciation Worksheet to record the original CGT date

Navigate to Fund Level > Investments > Depreciation Worksheet 

Things get a bit complicated here, so carefully follow all the steps.

1. Click on Create New to the Property Purchase Deposit on 01 January 2020
   
   
2. From the pop-up screen, change the Depreciation type to "Not Applicable"
   
   
3. Click on Create New to the Property Purchase Deposit on 02 January 2020
4. From the pop-up screen, change the Purchase Date to 01/03/2015 (the original CGT Date)
5. Select the relevant Depreciation information
6. Click on Save
   
   
7. From the Depreciation Worksheet screen, click on Edit to the asset purchased on 01 January 2020
   
   
8. From the pop-up screen, select the disposal event from the drop-down list to Disposal
9. Enter $1,000,000 as the Termination Value
   
   

Final View of the Depreciation Worksheet looks like below