ISSUE: How do you process a CGT event E4?

Example: We have a unit trust with 25 units at a$1 each cost base. I then get a Return of Capital for $40,000. How should this be processed?

RESOLUTION: 

Class does not automate the calculation of capital gain from distribution of capital return in excess of its cost base.

The workaround entry is the following:

• Process a distribution cash for these units for $40,000.
• Process a distribution tax statement like the following: 

Please note:

This assumes that the units in unit trust were held for more than 12 months, if they purchased the units less than 12 months, the enter 39975 should be recorded as Capital Gains Other Method (Domestic).