I have processed the CGT Reset but the trustees no longer wish to reset the cost base of these assets/parcels.
How do I undo the CGT Reset for these assets/parcels?
To reverse a cost base reset, the following steps will need to be completed:
- Delete the Cost Base Reset transactions
- Reverse any commutations (if applicable)
- Reverse entries (if applicable)
- Repeat any commutations as necessary (if applicable)
If any commutations have been processed for the fund, steps 2 to 4 will need to be followed to prevent issues with negative pension balances.
Delete Cost Base Reset transactions
You will need to delete the CGT Reset transactions from the Transactions screen.
You do not have to delete all transactions. You can delete only the selected transactions relating to the asset or parcel for which you no longer want to reset the cost base.
From the Transactions screen, search for 'cost base reset' and you should be able to see all the transactions created for the Cost Base Reset.
Tick the transactions to remove and select Delete.
Capital Works Expenditure
If you have posted any Capital Works Expenditure adjustment through the CGT Reset screen, you will need to delete the system journal after you delete the cost base reset transaction for the investment property.
Ensure you select the System Journal filter in the Transactions screen and search for Cost base reset - Capital Works Expenditure Adjustment.
Tick the checkbox next to that transaction and select Delete.