Hi Ricky,
It says the cash portion is not eligible for relief. Upon looking at ATO’s website for Partial Scrip for Scrip Rollover, treatment is slightly complicated. Using an example from their website as follow:
Example 27: Partial scrip for scrip rollover
Gunther owns 100 shares in Windsor Ltd, each with a cost base of $9. He accepts a takeover offer from Regal Ltd, which provides for Gunther to receive one Regal share plus $10 cash for each share in Windsor. Gunther receives 100 shares in Regal and $1,000 cash. Just after Gunther is issued shares in Regal, each share is worth $20.
Gunther receives $10 cash for each of his Windsor shares and so has $1,000 to which a rollover does not apply.
In this case, it is reasonable to allocate a portion of the cost base of the original shares having regard to the proportion that the cash bears to the total proceeds. That is:
A ÷ B × C = D
Where:
A is cash
B is total proceeds (cash and value of shares received)
C is cost base of original share
D is proportion of cost base for which cash was received
Following on from the formula above, Gunther’s calculations are:
$1,000 ÷ $3,000 × $900 = $300
Gunther’s capital gain is as follows:
$1,000 (cash) − $300 (cost base) = $700 (capital gain)
Gunther calculates the cost base of each of his Regal shares as follows:
($900 − $300) ÷ 100 = $6
My question:
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Can Sharesight handle such transaction currently?
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Otherwise, correct me if I am wrong, to book the correct capital gain as per the above method, I will need to enter fictional sell trade so that capital gain for the cash portion is recorded correctly? And then I will have to enter an opening balance trade to record the share portion?
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Lastly, if I enter an opening balance trade, can you confirm that when I sell CGT discount will be applied? Let’s say I sell next month, but I actually already have ADT shares from 5 years ago. So I am eligible for CGT 50% discount, by doing opening balance trade, will CGT disc be applied?