Australian (ASX) Stock Market Forum

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Hi, first time share owner/seller and forum user.

Seeking advice regarding the following.
I inherited a small number of CBA shares in 2009 when my mother died. She was gifted these by her mother circa 1999 (date to be confirmed, I am having dad try to find her HIN/SSN to get more accurate info). Her mother purchased these circa 1970 for $8 a share as per my aunt who is trustee of my grandmothers estate..specific dates not known, could be found if necessary.

I sold my shares in December '15 after holding them for 7 years; I reinvested the dividends acquiring a further 20 shares than what I inherited initially in the 7 years I held them.

My question relates to CGT and cost base:
Does the cost base come from when I acquired them (the date of my mothers death in 2009)
Does the cost base come from when my mother acquired them sometime in the late 1990's? (Remember these were a gift so I don't have a transaction record for these)
Does the cost base come from when my grandmother purchased these in the 1970's?

For whatever cost base is used, how does an accountant and/or myself work out the net profit when shares were acquired through dividends over 40 odd years as opposed to purchasing more?

Also am I right that I will be eligible for CGT concession as I held the shares for 7 years when I sold them?

I appreciate any advice; this is the most complicated tax return Ive ever done (I am early 20's, don't own property/investments other than these shares) therefore I've never used an accountant. I plan on doing so but am hesitant to be taken for a ride as a young woman who doesn't know too much... Any basic information you can provide from similar experiences is appreciated.
 
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Does the cost base come from when my mother acquired them sometime in the late 1990's? (Remember these were a gift so I don't have a transaction record for these)

This one. The cost base will be the value of the shares on the day your mother was gifted them. Your grandmother would have had a capital gain at the point when she gifted them to your mother. If the shares were gifted at the very least there was an Australian Standard Transfer form used. Depending on when in the 1990s there may have also been stamp duty that had to be paid which means the state revenue office might have a copy. Easiest thing to do is check with the share registry they should have the details.

CBA was listed in 1992, so there is no way your grandmother owned shares back in 1970.

For whatever cost base is used, how does an accountant and/or myself work out the net profit when shares were acquired through dividends over 40 odd years as opposed to purchasing more?

Each parcel of shares that is acquired will have its own cost base. The shares were purchased and each purchase under the DRP will have a price. The share registry should have all this information available including when you were issued shares under the DRP, the quantity and the price.

Also am I right that I will be eligible for CGT concession as I held the shares for 7 years when I sold them?

Yep.
 

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