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LIC Capital Gain Dividend Expand / Collapse
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Posted 3/10/2011 9:53:15 PM
Junior Member

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Last Login: 17/09/2014 7:35:03 PM
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Good afternoon.  I have a dividend received from an LIC which includes an LIC capital gain.

LIC Capital Gain : Franked dividend : $10, Franking Credit : $4.29

The attributable part of the LIC capital gain is $14.29.

"You are entitled to a tax deduction of $4.76 (ie 33% of the atributable part)"

I have no trouble with accounting for the dividend, but would like to know how the deduction for the $4.76 should be processed in MySF ?

Thanks

Post #4775
Posted 9/10/2011 3:58:22 PM


MySF Administrator

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Hello,

The only way to account for dividends that contain items that are more common to distributions is to record them as a distribution. Both are subject to the same tax treatment so it will not cause any issues.

Please note that when doing so you should change the 'Income Account to Use:' to 4116 Dividends Received.

In your case, the $4.76 should be placed into the non-taxable 1/3 discount field at the bottom of the distribution screen.

Regards,

MySF
Post #4776
Posted 9/10/2011 5:25:18 PM
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Thank you !

BTW I really appreciate your software.  Would recommend to others.

Post #4777
Posted 9/10/2011 6:30:35 PM
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Hmm.  When I place $4.76 in the "CGT / 1/3 discount / non taxable" field for the Distribution Details, the transaction appears out of balance ("Balance amount under/over") by -$4.76 and wants me to choose and account to post this to.

Any suggestions ?

Post #4778
Posted 10/10/2011 6:36:11 PM


MySF Administrator

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Hi,

Are you able to fax us a copy of the statement on (03) 9736 9006 or alternatively scan a copy and send it via email to info@mysf.com.au

We'll be able to give you specific instructions via your email address on how to enter this dividend but only if we have the statement in front of us.

Regards,

MySF

Post #4779
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