Issue

How to trigger Realised Gain when Capital Return results in Negative Cost.

Example

A managed fund with cost $1,000 receives a distribution income of $1,200 as cash.

The Annual Tax Statement shows the amount as:

• $100 - Other Income
• $1,100 - Capital Return

This Capital Return will result in a negative book cost of -$100 ($1,100 - $1,000) to the managed fund.

How can I process this in Class so the cost of the investment becomes nil and use $100 as a Realised Gain?

Resolution

The workaround is to process the Tax Statement as below:

• $100 - Other Income
• $1,000 - Capital Return - to make the cost of investment nil
• $100 - enter in either Discounted/other/Index gain field

Example of the Tax Statement (for demonstration purposes only)