When validating the annual return I am receiving the error CMN.ATO.CGTS.402171: Invalid amount. A capital loss can not be carried forward where a net capital gain amount has been reported
Causes & Solutions:
This validation error appears when there is both a Capital Loss (carried forward) and Capital Gain in the SMSF annual return.
1. This may occur in the situation where the fund has collectible capital gains and other capital losses in the annual return. Currently, Simple Fund 360 does not apply capital losses to collectible capital gains which may result in this error.
To enable the validation to pass, you will need to edit the CGT schedule manually. This is scheduled to be fixed in the coming releases.
2. This may also occur when there are multiple segregated and unsegregated segments during the year. Where capital gains arising from segregated assets are wrongly included in the calculation of total net capital gains in the CGT Schedule, this error may happen.
To enable the validation to pass, you will need to edit the CGT schedule manually. Users can generate Realised Capital Gains reports for all the segregated and unsegregated periods correspondingly in a financial year. Users would then be able to identify the CGT components under different pension policies and adjust accordingly. This issue is scheduled to be fixed in the coming releases.
Please note BGL does not provide tax advice, for compliance purposes, check ATO Guideline