CGT Gain or Loss ??

LLeBron23 on 24/08/2020 - 16:16

Was hoping for some help as I'm a bit confused on whether I have a capital gain or loss to report.

I bought 372 shares of FLT at $13.16 ea

Then the price fell, and I bought 238 more at $10.54

Now I have an avg cost of $12.14

I then sold 238 shares at $10.85 ea

Does the portion I sold count as a $73.78 capital gain on it going up from the 2nd portion I bought? Or a $307.02 loss based on the average buy price? I havent sold all of it still Hold some shares of it .

This all transaction happened with in 12 months. Need a help for taxation purpose .

Financial

Comments

  • toniyellow on 24/08/2020 - 16:30
    +11

    You need to choose which shares you are selling (and keep records of what your choice was, so the next time you sell shares you know which ones are left)
    https://www.ato.gov.au/General/Capital-gains-tax/Shares,-uni…
    has an example. If you are not confident, get an accountant.

    • Drakesy on 24/08/2020 - 16:52

      +1

      Hey, at least you didn't have them at the start of the year when they were $35
      TBH i still don't know how Flight Centre is still a viable business model, booking travel online has never been easier/more straightforward, and don't come with outrageous cancellation fees

  • loke on 24/08/2020 - 17:12

    The ATO website does have a wealth of information.

    The tax software in particular that I used for share portfolio's split it into Parcels

    e.g.

    Parcel 1 dd/mm/yy 372 FLT $13.16

    Parcel 2 dd/mm/yy 238 LFT $10.54

    easy enough to plonk into an excel spreadsheet and you go from there

    • tsunamisurfer on 24/08/2020 - 17:27

      Correct.

      OP you decide which tax parcels you want to sell out of.

      If you are going to be high on the tax brackets, then perhaps incur a Capital Loss.

      If taxable income is low, then go at a Capital Gain at the lower brackets.

      • MatrixM on 25/08/2020 - 23:13

        Sorry for random question, what would be the benefit in claiming a capital gain instead of a capital loss? Or is it just that it wouldn't make a difference which of the two it is if it's a nontaxable income bracket?

  • Donaldhump on 24/08/2020 - 17:26

    wonder if you can split them perfectly so they cancel each other out to zero??

    222 sold were bought @ 10.54 = cg of 68.82
    26 sold were bought @ 13.16 = cl of 68.12

    • beeawwb on 24/08/2020 - 17:34

      Haha, this was the first thing I thought of too! Popped it in to Excel to see what the closest I could get was.

    • JimB on 24/08/2020 - 18:38

      You can but why?

      See my post below.

  • JimB on 24/08/2020 - 18:37

    Just nominate the ones with a capital loss.

    You will be able to carried the capital loss infinitely to offset future capital gains.

    The only reason to nominate the ones with capital gains is if your taxable income is so low this year that you do not pay tax.

  • LeBron23 on 24/08/2020 - 19:05
    +1

    Thanks guys for your help and sharing your knowlege , This time its definately capital loss and will keep record of everything in excel sheets for future reference. I love this community out here.

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