Author: Bruce4Tax(Taxicorn)Taxicorn 27 June 2021
1. What information does the ATO receive when filling in the capital gains section 18? Do you just receive the total gain/loss amounts in labels 18 A,H & V? Or do you also receive the data from each cgt worksheet inputted?
Your software provider can tell you what they transmit - ours transmits the label totals, unless we have to to the CGT schedule.
https://www.ato.gov.au/Forms/Guide-to-capital-gains-tax-2020/?page=108
2. When a client for example has sold say 15 different parcels of shares or upto 15 crypto cgt events, are we required to complete a worksheet for each event? Or is it sufficient to use the clients year end summary information provided, and include the total figures in label 18 A, H & V?
TPD Code requires you to make reasonable enquiry = cannot just take client data without checking for reasonability.
You still need to be able to show how the CGT is correct, based on transaction documents.
what do you recommend?
We use Excel if it is simple, and specialised CGT software when it is complex.
SMSF transactions are all done throulgh the SMSF software.
We have created our own CGT property master in Excel, becuase we do so many properties.
It does not actually take much time to do, as long as the inputs are correct.
The result is a series of impressive reports that show what needed to be done.
Main reason for the question is becuase clients are cost sensitive when it comes to charging for each schedule inputted, which is understandable.
That is why you need to tell them in advance - if they want to go doing these things, they need bear the costs that go with it.
They will always be cost sensitive if you let them get away with it, so they need to be told up front that it will cost more to do what needs to be done. If they don't want to pay for it, don't do it.
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