Calculating CGT or Losses on TLS - Aussie Stock Forums

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  1. #1

    Unhappy Calculating CGT or Losses on TLS

    Asking on behalf of a friend who has T1 and T2. If she sells some TLS 1 or 2 to buy some T3, which shares are considered to have been sold first for CGT ? or, are they averaged out ? Obviously T1 is a profit and T3 a loss.
    I've seen the answer written a million times, but can't find it. Thanks.

  2. #2

    Default Re: Calculating CGT or Losses on TLS

    I beleive you can sell which ever you like, but you will need good documentation to say which one's you sold.

  3. #3

    Default Re: Calculating CGT or Losses on TLS

    that is correct, you can choose whichever ones you wish to sell, but keep documentation. I believe there are 3 ways (methods) to look at it:

    FIFO: first in first out (first bought, first sold)
    LIFO: last in first out( last bought, first sold)
    WA: weighted average (the average price of all shares bought)

    i hope this helps.


  4. #4

    Default Re: Calculating CGT or Losses on TLS

    Yes you can choose which parcel you wish to sell. There are no conditions.
    You can get the details from the contract note/s you choose. You do not need to sell the total quantity showing on the contract note/s.

    It does not have to be the first contract note by date, nor the last, nor an average of any contract notes. It can be any contract note/s you choose including the ones in between first and last. Your buy price is the price showing on each purchase contract note used. No need to average.

  5. #5

    Default Re: Calculating CGT or Losses on TLS

    Thanks for your help everyone. I have it on good authority that the strategy of sell the T2's and buy the T3's is a good one (if you're disposed towards T3 that is!)

  6. #6

    Default Re: Calculating CGT or Losses on TLS

    There are restrictions on using weighted average....

    I know that looks bad, ... would everybody whos ever been overseas on behalf of Australia, or an Australian, agree to every photograph of them being published? John Howard

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