Your SMSF’s assessable income includes any net capital gains. Under the capital gains tax (CGT) provisions a net capital gain is:
| Calculating Capital Gains (Discounted Method*) | |
|---|---|
| Capital Proceeds (what you receive from the sale of an asset) | $50,000 |
| Less Total Cost Base of Asset (what you paid for the asset) | $25,000 |
| Equals Capital Gain | $25,000 |
| Less Total Capital Losses for the year | $5,000 |
| Less Capital Losses carried forward from previous years | $5,000 |
| Equals Net Gains for the year | $15,000 |
| Less Discount 33% Applied (Assets held for 12 Months) | $5,000 |
| Equals Assessable Capital Gains for the year | $10,000 |
| *If no discount applies for that asset do not reduce the assessable capital gain by the discount. | |
A capital loss (for example, losses on the sale of shares) is not an allowable deduction and is only able to be offset against capital gains. If capital losses are greater than capital gains in an income year, they must be carried forward to be offset against future capital gains.