Calculating CGT or Losses on TLS

[peejay]

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.

 

[carmo]

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

 

[DOC]

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.

doc

 

[123enen]

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.

 

[peejay]

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!)

 

[markrmau]

There are restrictions on using weighted average....

http://law.ato.gov.au/atolaw/view.h...001&recStart=21&recnum=23&tot=25&pn=ALL:::ALL