Issue

How to record the deferred notional gains and reflect the reset cost base for a property if the property has undergone transitional CGT relief in other software before the fund is loaded to Class.

Resolution

There are two options available to record the deferred notional gains and reset the cost base for the property account:

Option 1: Using Edit Parcel History for investments

Option 2: Using the Depreciation Worksheet for property

Using Edit Parcel History for Investments

Navigate to Fund Level > Load Opening Balances

1. Click on Edit Parcel History  of the property account
2. Enter the reset cost base for the property
3. Select the 'CGT Relief Cost Base Adjustment' cost base adjustment type
4. Enter the differences between the accounting cost base and the reset cost base
5. Enter the deferred notional gains
6. Select the 'Deferred Non-Discountable Capital Gain' cost base adjustment type
7. Enter the amount after applying any discount applicable and the pension exemption factor

If the cost base you recorded for the property contains only the reset cost base information, i.e. the reset cost base has been applied to the accounting cost base, do not use the CGT Relief Cost Base Adjustment.

Using the Depreciation Worksheet for property

Navigate to Fund Level > Transactions > Depreciation Worksheet

1. Select the Property Account
2. Complete the relevant line items in the depreciation worksheet
3. Enter the deferred notional gains
4. Reset the cost base for the portion of the property that attracts CGT