CGT Cost Base Adjustment – Simple Fund 360 Knowledge Centre

Support Query

The CGT Cost Base of an investment is incorrect. How can this be adjusted without affecting the Accounting Cost Base?

The CGT Cost Base of the investment is determined by the Accounting Cost Base minus any Tax-Deferred/Depreciation amounts.

You can view the total amount of Tax-Deferred/Depreciation in the Unrealised Capital Gains Report or the CGT Register.

There are two ways you can edit this amount if it is incorrect:

Enter a nil transaction to 23800/INVESTMENT with the Tax-Deferred adjustment in the more details section
Using the Smart Docs - CGT screen to create this transaction.

Not all investment accounts have a 23800 (Distributions Received) account linked to them automatically.

You can use the steps in the accordion below to determine if the investment doesn't have a 23800 account linked and if so, how it can be added.

Linking a 23800 account to the Investment

From the Main Toolbar, go to Accounting.
Select Chart of Accounts from the list.

Search for the Investment account. This is an account within the 70000-79999 range. For this example, we will use 77600/WES.AX
Click on the investment account and select more details
On the right side, there will be a list of linked accounts in ascending order. If 23800 is not close to the top, the account is not linked. If so, click Add Linked Account and select Income
A new income account will appear at the bottom of the list. Set the account code using the dropdown box shown below by searching for 23800 and selecting the search result
Click to save this change.

From the Main Toolbar, go to Accounting.
Select Transaction list from the list.
Select the New Transaction.
Select Journal.

Date	Input the date required for the adjustment. This is typically 30 June or the date the investment is being disposed of.
Select an account	Select Account 23800/INVESTMENT
Amount	Input 0 in the credit field
More Details Panel	Click
Input the increase / decrease for the CGT Cost Base	Scroll down to the bottom half of the Distribution / Interest details section. Input a positive amount in Tax Deferred or AMIT Shortfall based on which effect is desired: Decrease CGT Cost Base = enter in Tax Deferred. Increase CGT Cost Base = enter in AMIT Cost Base Net Increase Amount / Shortfall. Negative values cannot be entered into either of these fields.

The balancing account can be recorded to account 49000. Input 0 in the debit field

To save the transaction, select Post.

From the Main Toolbar, go to Accounting.
Select Smart Docs-CGT from the list.
Select Manually Enter Investment Data.

Enter the Investment Code for the investment:
Click and select to remove the default investment transaction, then select Distribution:
Click on
Enter the transaction date and record date for this adjustment.
This is typically 30 June or the date the investment is being disposed of.
Input the adjustment as a positive number in the Tax Deferred or AMIT fields:

- For decreases to the CGT Cost Base = enter the adjustment under Tax Deferred.
- For increases to the CGT Cost Base = enter the adjustment under AMIT.

This will create an unmatched nil transaction similar to the following:

If you wish to not have this transaction show as unmatched, manually change account 94910 to 49000.