During the year I sold a shares a number of long term holdings. Two of the companies that I invested in were ARG and WAM. For both of these LICs I have been enrolled in the DRP. This has resulted in quite a few small parcels that I now need to calculate Capital Gains on.
I have kept track of all of the parcels in a spreadsheet, but am unsure of whether the cost base of the shares is the DRP price or the Dividend amount.
For example, I received a dividend of $48 and the DRP price was set at $5 per share. This would result in me receiving 10 new shares (the fractional amount is rounded up) in place of the dividend.
Is the cost base of this parcel of 10 shares :-
2. $50 (ie 10 shares @ $5)
I had assumed that it was $48 as this is the amount that they cost me (ie the money I missed out on receiving in my bank account).
I have checked the ATO website and tried googling for the answer, but cannot find a definite answer either way.
Thanks in advance.