This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

Broker that keeps records for AFI's Bonus Share plan

Jump to new
S

seven7

Joined
22 June 2014
Posts
8
Reactions
0
Hi
I am looking at buying some AFI and using their Bonus Share plan instead of DRP for tax reasons.
Is their a broker that keeps track of the needed adjustments in share price due to the bonus shares? I am looking for a broker that does this so that when I (or my estate) eventually sell these I don't have to sort through 20years or so (hopefully) or adjusted share prices due to participating in the Bonus Share plan.
Ideally the broker would do this and life would be much simpler towards the end.
 

Would this site be of any help?
 
rnr said:
Would this site be of any help?
Click to expand...
Hi
Thanks for taking the time to reply.

The site you linked is AFIC's site.

I know it fairly well. AFIC has a Bonus Share plan which can be used in place of the DRP so that no tax is payable until you sell. Yes it's called the DSSP and is good for people on a high tax rate.

The only hassle is keeping track of the changing cost base each time you receive a dividend. I am after a broker who keeps track of this for you each time you receive bonus shares.
 

Am I correct in assuming that you prepare your own tax return?
 
Hi seven7,

I doubt that you would find a broker prepared to provide that service for you.

That said, having looked at AFIC's RULES OF THE DSSP it would be very easy to set up an Excel spreadsheet to calculate the "cost per share" of your holdings as the years pass by.
 
What's the problem with maintaining your own spreadsheet for each position ?
If you use a low-cost broker, chances are minimal that they'll offer extra luxury. If you're lucky and find one of the remaining full-service brokers that provides those extras, the associated costs would dwarf the benefits of maintaining a spreadsheet. Once it's been set up properly, all you need is add one line each time you add a parcel of shares. Call it 3 minutes Excel work, twice a year.
 
You must log in or register to reply here.

Similar threads

August 2025 DDD
2 3
Replies
54
Views
7K
ducati916
Fun with ChatGPT
2
Replies
24
Views
4K
SirRumpole
Broker for US stocks and Commodities
Replies
0
Views
2K
Student of Gann
S
Broker that has option for automatic rebalancing
Replies
1
Views
2K
Belli
B
N
Who is eligible for a Share Purchase Plan?
Replies
2
Views
622
nixus
N
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...