Tax - CGT and multiple holdings - Aussie Stock Forums

# Thread: Tax - CGT and multiple holdings

1. ## Tax - CGT and multiple holdings

Question - I have bought 3 tranches of BHP over the years. I sold one tranche today. Can I choose which tranche to use as my capital base?

E.g.
140 shares @ \$10 on 1 Jan 04
120 shares @ \$15 on 1 Jan 05
110 shares @ \$20 on 1 Jan 06

If I sold 110 shares, can I use the \$20 1 Jan 06 as my cost base or do I have to use the earliest date? I couldn't find an answer on the ATO website (obviously not looking hard enough).

Thanks for your help.

2. ## Re: Tax - CGT and multiple holdings

I believe it's on a first in first out basis

3. ## Re: Tax - CGT and multiple holdings

with regards to choosing which shares you have sold, its simple - its YOUR choice.

you choose which shares you have sold when calculating CG - theres no 1st in 1st out, no averages - simply you choose.

140 shares @ \$10 on 1 Jan 04
120 shares @ \$15 on 1 Jan 05
110 shares @ \$20 on 1 Jan 06

and heres the teaser - if you want, you can mix it up
110 sold today can be 35 from \$10, 35 from \$15 and 40 from \$20....OR
110 FROM \$10.
YOU CHOOSE.
- its all simply IF THEY AUDIT YOU, show them how it was calculated.

http://ato.gov.au/individuals/conten...t/00104611.htm

its a big doc - you find the page

4. ## Re: Tax - CGT and multiple holdings

Thanks SOG - have had a look at this guide, but will obviously have a closer read tonight. Happy tax time everyone!

5. ## Re: Tax - CGT and multiple holdings

Originally Posted by son of baglimit
with regards to choosing which shares you have sold, its simple - its YOUR choice.

you choose which shares you have sold when calculating CG - theres no 1st in 1st out, no averages - simply you choose.

140 shares @ \$10 on 1 Jan 04
120 shares @ \$15 on 1 Jan 05
110 shares @ \$20 on 1 Jan 06

and heres the teaser - if you want, you can mix it up
110 sold today can be 35 from \$10, 35 from \$15 and 40 from \$20....OR
110 FROM \$10.
YOU CHOOSE.
- its all simply IF THEY AUDIT YOU, show them how it was calculated.

http://ato.gov.au/individuals/conten...t/00104611.htm

its a big doc - you find the page
OOPS, Chuck is good for roundhouses not for accounting.

6. ## Re: Tax - CGT and multiple holdings

Originally Posted by sam76
OOPS, Chuck is good for roundhouses not for accounting.
you don't need to worry...the last person to audit Chuck Norris spent 2 years in traction.

Interesting thread, I always assumed it was first in first out too....ahhh the possibilities

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