Issue
The 10% deposit was paid a couple of years ago. But the SMSF has been informed that the property cannot be settled and the 10% deposit cannot be refunded. How do I take up the deposit as Capital Loss?
Resolution
To resolve this issue:
Step 1: Clear the Custom Holding Account currently carrying the 10% deposit
Step 2: Take up Capital Loss using Realised Accounting Gain/Loss event
Step 3: Match off the transaction to the Business event
Clear the Custom Holding Account currently carrying the 10% deposit
Navigate to Fund Level > Transactions > Browse Bank Statement
- Select the Custom Holding Account from the drop-down list
- Click on "Add" to add in a Cash Out transaction to clear the Custom Holding Account
Take up Capital Loss using Realised Accounting Gain/Loss event
Navigate to Fund Level > Transactions > Fund Income > Realised Accounting Gain/Loss
- Select the Custom Holding Account in Custom Holding Account field
- Enter the Effective Date
- Enter the Gain/Loss Amount - the same amount as the Cash Out transaction, but negative
- Enter the Realised Capital Loss into the Capital Loss field, in positive
The amount entered into the Capital Loss field can be different from the amount entered into the Gain/Loss Amount field.
Match off the transaction to the Business event
Navigate to Fund Level > Transactions > Match Transactions