HandiTax allows the user to:
Decide on whether a capital gain should be calculated using the discount or indexation method.
Offset losses against gains, determined by order and amount.
Report on the proportion of gain or loss relating to each taxpayer.
Transfer the results from the worksheets into the Australian Taxation Office's Capital Gains Tax Summary.
Transfer the amount from the Capital Gains Tax Summary into the Main form I at item 18.
Enter capital losses brought forward (collectables and non-collectables).
Provide a summary report that lists all gains/losses and a breakdown that matches the Australian Taxation Office Capital Gains Tax summary format.
Note: HandiTax will apply losses as per the details you have entered. You should still review the results as individual situations may require a different result.
Entering Capital Losses and Brought Forward amounts
If you have a capital loss amount brought forward from prior years these can be keyed into item 18 of the Main form I. Where this detail has been rolled forward you are required to review the amount prior to passing validation.
Entering Capital Gain transaction details
When entering details on the individual worksheets you are required to enter a choice of Discount or Indexation.
Note: For assets purchased after 11.45 am on 21 September 1999 there is no indexation available as the indexation factor is frozen at this point. You should complete the question with a D. If an asset has been held for less than 12 months you should complete the question with an I.
Applying Losses against Gains within the worksheet
HandiTax can allocate the available capital losses against any capital gains that have made during the year.
Enter the brought forward losses in the main form.
Enter your gains and losses in the worksheets.
In the worksheets that contain a capital gain, complete the final item, Application of losses.
Enter the order that you wish to apply the losses.
If the total losses is less than the total gains you can enter an amount to limit the amount of loss to apply against this specific gain. You will need to apply all the losses, and will receive an error if there are losses and gains (of the same type) remaining after losses have been allocated.
If you do not enter an amount HandiTax will allocate available losses against this gain provided you enter an order number.
If you complete the Application of Losses item and this sheet shows a capital loss you will receive a warning message, please correct the error.
HandiTax produces a report which shows a summary of the capital losses and which capital gains they are allocated against, together with any losses to be carried forward to future years.
Example extract from report:
Transferring amounts to the CGT Summary Schedule and the Main Form I
If you are required to complete the ATO CGT Summary Schedule, you can transfer the amounts within the HandiTax worksheets into the appropriate place within the CGT Summary schedule.
Within the CGT Summary schedule simply answer Y to the question Transfer from Capital Gains Worksheets
The final amounts will transfer into the main form. Simply answer Y to item 18 label G in the main form I
NOTE: For other form types you will need to complete the details in the appropriate main form.
Should you wish to you are also able to key the relevant details into the schedule/form and HandiTax will use the amounts that you have entered.