Improved LIC capital gain reporting for Australian investors

Just in time for FY2017/2018 tax returns we’ve added a helpful new feature to Sharesight to assist Australian investors in Listed Investment Companies (LICs).

What’s new?

Because of the way the Australian Tax Office (ATO) treats capital gains in dividends from LICs these need to be treated differently from a normal dividend payment. We’ve now added an additional ‘LIC Capital Gain’ field to the dividend payout form to correctly record this payment.

While Sharesight is unable to automatically populate this field with a figure (you’ll need to enter it manually once the LIC notifies you of these values) once entered the LIC Capital Gain value will be correctly shown as a deduction (at a rate of 50% CGT discount) in the improved Sharesight taxable income report, to easily record in the D8 section of your income tax return.

Who will see this new LIC capital gains feature?

On payout forms:

• A tax residency set to “Australia”

On the taxable income report:

• A tax residency set to “Australia”

On the Income Tax Return section of the taxable income report:

• A tax residency set to “Australia” and;
• A tax entity type set to “Individual or Trust” (although it’s only relevant to individual tax entities)

Notes on the Income tax return section

• The tax return field references are based on the tax return for individuals 2018 and tax return for individuals (supplementary section) 2018.
• Sharesight does not provide taxation advice and this report does not constitute personal taxation advice. If you have any questions about your tax position we recommend you contact your accountant or tax advisor.

FURTHER READING

• Record-keeping requirements for Australian investors
• Capital gains tax calculator for Australian investors
• Tax loss selling for Australian investors