I recently set up an existing SMSF into Simple Fund 360. Some of the investments that make up the opening balance for Simple Fund 360 involve MIT’s. These investments have an aggregated amount of cost base adjustments arising from prior years trust distributions. These cost base adjustments were not reflected in the opening values. Is there a way to reflect these prior year adjustments in the calculation of the taxable gain/loss.
I had that problem in setting up for FY21 and another. I found entering the year end tax info for the MITs beyond me. So I have a spreadsheet that enters the information and will put through a journal entry when the MIT is sold to record the tax effect of the cost base adjustment.
Another work-around is to do a bed and breakfast.