Management Fund Tax Questions

• 

  Jimothy Wongingtons on 25/07/2022 - 18:55

  -1

  FIFO or LIFO - pick one and stick to it.

  • 

    Guerilla89 on 25/07/2022 - 18:57

    Thanks for your advice, are you just providing that as to what you would do or is that how the rules work?

    • 

      AndyC1 on 25/07/2022 - 19:03

      Sounds like you need to speak with your accountant to confirm the tax rules you need to adhere to.

    • 

      Donaldhump on 26/07/2022 - 09:01

      the rules are the choice is yours. pick the one that works out best for you tax wise.
      keep a spreadsheet of buys and pair up the sells with buys that you see fit.

      what you do need to keep in mind is wash sales. have a read on that

  • 

    Scantu on 26/07/2022 - 11:01

    This isn't correct. You can sell any shares you want at any point. There is no forced legal order.

• 

  tsunamisurfer on 25/07/2022 - 19:11

  You invest $200 per month per fortnight?

  When you are selling the units you pick which tax parcel you want to sell.

  If you are in a year where you have made capital losses, sell the cheapest parcel to make it tax effective.

  If you are in a year where you have excessive capital gains, and you want to dispose of those assets, chose the tax parcel with the highest cost which could lead to a capital loss to offset your other capital gains.

  • 

    Guerilla89 on 25/07/2022 - 19:14

    Thanks, it appears both yourself and Jimothy are correct I can basically decide which shares I want to sell https://www.ato.gov.au/Individuals/Capital-gains-tax/Shares-…

    For simplicity it's probably worth keeping a personal record of how many shares I purchase each year and at what price, the less transactions I can make a year the simpler (although that makes saving harder but oh well). I'm just terrible at saving so by putting my money frequently into a management fund it kind of locks it away from myself.

    • 

      SBOB on 25/07/2022 - 19:57

      +1

      it's probably worth keeping a personal record of how many shares I purchase each year and at what price,

      you can export that from vanguard at any time, directly from your members login area.
      One of the 'benefits' of being in the managed fund is their account keeping/record keeping and access to that

• 

  jv on 25/07/2022 - 19:59

  +3

  How are the shares viewed when selling though? If I sold $200 worth of shares would I be selling the newest shares I've purchased or the oldest or a mix?

  Is it a manged fund or shares?

  If it a managed fund, they will buy & sell the shares and issue you with a tax statement for doing your tax.

  • 

    netjock on 25/07/2022 - 21:19

    OP probably in a managed fund. This is closest to right answer I guess.

  • 

    FirstWizard on 26/07/2022 - 11:37

    +1

    Exactly!

    AFAIK, with a managed fund, you need to worry about 2 types of capital gains/losses.

    • When they buy and sell for you - you should get an AMIT Member Annual Statement for the tax year from the fund manager, which will include a capital gains component.
    • When you buy and sell by yourself - you should keep records and calculate yourself