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CGT from shares sold - HELP

Discussion in 'Beginner's Lounge' started by cage123au, Aug 12, 2018.

  1. cage123au


    Likes Received:
    Jul 17, 2018
    Hi, I am new here and hope someone can at least give me some sound advice, or point me in the right direction. I have to say, trying to read the ATO site is not that easy, it is just links to more links, very confusing. Anyway, to my question.

    Basically, my circumstance is I received shares through an ESS over the timeframe 1999 > 2009. I paid 1K/ month from after tax wages to purchase shares, there was NO discount on these shares at all. The shares were also purchased under the 10 yr tax deferred rule at the time which was available to me. Once they reached the 10 years, I paid the appropriate tax.

    When I retired, I sold them all at the same time. As mentioned the shares were bought on a tax deferred system, all tax has been paid on the shares, even the ones that had not reached their 10 year event. The dividends from these shares over the years was reinvested as additional shares. Prior to me selling, no actual money had been received by me.

    So, I am thinking as I have the cost base for every share I bought, and when, it should be a matter of just taking each of those and put it against the sale price, Some would be a gain some were a loss. I have made myself a spreadsheet and inputted every share bought at the time and for what cost, and marked that again the sale price. Some were a gain, some were a loss. I added up all the total gain then the total loss and came up with a figure that was a gain overall. I then applied a 50% discount of that gain, and then deduct any the selling brokerage fee. I did not have to pay fees when purchasing the shares, the company paid that. I then ended up with a figure which is what I am calling my overall NET gain.

    Does, my situation sound about right. I'd just rather ask in here first. If it proves too difficult, I will just go to an accountant, but as my tax return is very simple now, thought I would give to a shot. I will not have to do this again in the future. This was a one time event.

    I do realise that this NET figure will be added to my income for the year, then I pay tax accordingly at marginal rate, which in my case seeing I am retired will be lily 19c as I will be overall the $18,200.

    One last piece of this puzzle is that since retiring, I have done my own online tax return via MyGov. Can anyone point me to the exact input place I need to enter the gain. I cannot seem to find the right area. I did see a possible place, but that seems to be on the supplemental section and I do not think that part can be done as an online form.

    So, hopefully, someone here can shed some light on this. If any additional info required, please ask.

    Apologies for the long first thread, but thought I should try and be detailed in my asking.

  2. HelloU


    Likes Received:
    Jan 3, 2018
  3. MarketMatters


    Likes Received:
    Aug 14, 2018
    Embarking on the taxation of the Employee Share Schemes can be passage to insanity as you have found with the ATO site! There are so many variables with ESS's with each one different in some shape or form ie. determining when the shares were vested into one's name before disposal to determine cost bases. When you mention discount - I assume you mean you did not receive the shares at a discount to the market price?

    There were changes around 1 July 2009 involving the cessation of holdings (but doesn't appear you sold anything prior to this date) and again around July 2015 for tax deferred schemes but believe these relate to rights and not shares.

    Overall, you have undertaken the grunt work of calculating the cost bases (assuming reinvested divs too) hence it would be advisable, on this occasion, that you make a visit to the accountant to determine the correct treatment. You have surely reduced the time they will associate in finalising your affairs.

    Concerning the completion of the supplementary section of the return did you review this 'general' link https://www.ato.gov.au/Individuals/...supplementary-section-of-the-tax-return-2017/

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