Issue
How do I take up Investments in the Rollover in Fund, at Market Value with the original CGT date and original purchase cost for a Family Law Settlement?
Resolution
- Process a Non-cash Acquisition to take up the investment at market value
- Dispose of the Investment at book cost
- Manually match the parcel
- Use Realised Accounting Gain/Loss to net off the Capital Loss (Unmatchable event)
- Use Excel Transaction Loader to acquire the investment with the original CGT Date and book cost
- Match the disposal event (from Step 2) with the acquisition event created by Excel Transaction Loader
- Additional Step, if there is tax cost base adjustment (for example, AMIT adjustment), use Distribution - tax Statement event to take up the adjustment.
Worked Example
10,000 units of CBA with a cost price $30 and a market price of $50 has been rolled into the Fund. The rollover in date is 01 January 2020.
Process a Non-cash Acquisition to take up the investment at market value
Navigate to Fund Level > Transactions > Investment - Buy > Non Cash Acquisition
Disposal of the Investment at book cost
Navigate to Fund Level > Transactions > Investment - Sell > Listed Security disposal
Manually match the parcel
Navigate to Fund Level > Periodic Processing > Maintain Parcel Matches
Use Realised Accounting Gain/Loss to net off the Capital Loss (Unmatchable event)
- Set up a Custom holding Account, as below
- Take up the difference using Realised Accounting Gain/Loss event
Use Excel Transaction Loader to acquire the investment with the original CGT Date and book cost
Refer to our User Guide, Excel Transaction Loader Introduction for instructions.
Match the disposal event with the acquisition event created by Excel Transaction Loader
Navigate to Fund Level > Transactions > Match Transactions
Additional step if there is tax cost base adjustment (for example, AMIT adjustment), use Distribution - tax Statement event to take up the adjustment
Navigate to Fund Level > Transactions > Fund Income > Distribution - Tax Statement