How to enter 2021 Westfarmers Capital Return of $2/share on Tax Return?

 Author: peterharvey(Newbie)Newbie

14 Sept 2022

Thanks for that Bruce.

I now understand what a Capital Refund is - it just reduces the original purchase price of the share.

I researched and found the ATO link here:

https://www.ato.gov.au/Individuals/Ind/Events-affecting-shareholders/Wesfarmers-Group-Limited-(Wesfarmers)-return-of-capital/

I am more like ATO Example 1, because I purchased Coles-Myer shares back in the early 2000's, and in 2007, Coles-Myer sold off to Wesfarmers [or something like that], so I got $5,200 from Coles and 360 Wesfarmers shares.

Hence, like ATO Example 1 above, despite receiving $2/share capital return x 360 shares for a total of $720 in capital refund last December, I would not enter anything in my 2022 Tax Return - however in future, when I do sell my Wesfarmers shares, I must adjust my original cost base share price, and this will result in a higher capital gains, hence more capital gains tax?

Despite what ATO Example 1 has said in the link above, my friend tells me that I must still on the paper Supplementary section, enter a capital gains of $0 at both 18A and 18H, otherwise the ATO can question where I received $720 in Capital Refund from?

Reply0 likes

• Report as inappropriate