Question:
I have a client and she had a couple of CGT Events in the 2020 year.
On one of them we wish to claim the main residence exemption as per the schedule below.
But when I complete the worksheet, there is nowhere to put the main residence exemption so that the taxable capital gain comes down to zero.
Please advise on how I can declare the CGT event to the ATO but claim the main residence exemption.
Solution:
Currently, LodgeiT doesn't support main residence calculation in automatically mode. For this time, please fill the capital gain manually with required values (please see below image)
Exemption or rollover code is just the statistical field that goes to ATO and doesn't affect the calculation.
We advise do not report the event if it is 100% exempt as it's not taxable anyway. If the exemption is partial then the client should only report the capital gain applicable part and ignore the exempt part for a main residence exemption.
Reference note from the ATO -
In case when capital gain is Fully exempt, it may not be included in tax form. You can remove amount and fill only exemption code.
Partial exemption - there is no appropriate field on the form, so there is no chance for the user to report exemption amount along with capital gain/loss.
ATO advice about "Partial Exemption" -
Reference link - ATO advice about "Partial Exemption"