Capital Gains – what information do you need to provide?

Have you sold real estate or shares during the last tax year? If so, the calculation of any Capital gain or loss will need to be taken into consideration when completing your tax return.

These days the ATO is notified about the sale of Real Estate and Shares which are reported in the ATO Prefill report. The details include the date of sale and the proceeds realised. If the sale relates to real estate, the address of the property is noted; for shares, the company involved and the number of shares sold are shown.

But, to work out the capital gain or loss applicable, the original purchase price and date of purchase of the property or shares are required – this information is NOT available from the ATO so we will have to obtain the necessary details and copies of relevant documents from you.

FOR REAL ESTATE:

• The date the contract was signed (not the settlement date)
• The amount of the purchase
• Stamp duty paid
• Legal, conveyancing and estate agent fees
• Also, details of the cost and date of any major renovations or extensions to the property
• Contract of sale and settlement statement

FOR SHARES:

• The name of the company or entity
• The date, cost and the number of shares purchased
• Dividend reinvestments – the date, amount of dividend and the number of shares allocated for each and every reinvestment
• Notifications of company mergers/demergers, schemes of arrangement, share conversions and bonus share allocations

There are many factors to be taken into consideration when calculating a capital gain or loss – providing as much information as possible initially is an important part of the process.

Please do not hesitate to contact our office if you have any questions – we are here to help you.