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IB - which report to use for FY 14 tax return?

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Hi guys,

I'm new to IB & stock investment. Just wondering which report do IB users use for individual tax reporting purpose? I tried account management - reports - tax - tax forms which give me no information at all. Should I just use the activity report for the FY 13 - 14 date range & pick the realized gain/loss & any dividends paid during this period? I don't have any dividends except for one stock was ex-date late June and won't be paid until July. Does this need to be included as well?

Thanks
 
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Hi guys,

I'm new to IB & stock investment. Just wondering which report do IB users use for individual tax reporting purpose? I tried account management - reports - tax - tax forms which give me no information at all. Should I just use the activity report for the FY 13 - 14 date range & pick the realized gain/loss & any dividends paid during this period? I don't have any dividends except for one stock was ex-date late June and won't be paid until July. Does this need to be included as well?

Thanks
I use IB for my personal account, which for tax purposes is treated under the Capital Gains system and for my company account, which is treated as share trading. I presume you are an investor under the CGT system for tax purposes?

Although IB have excellent reports, I prefer to use a spreadsheet to manage my tax calculations because IB doesn't give me the flexibility I want for determining what block of purchased stock I am selecting for each sale I make. I don't use FIFO or LIFO but determine each sale differently. I update the spreadsheet almost daily, whenever I have activity, so I don't have a monumental tax at year end to get up to date.

So I use the IB Activity report to double check my totals (sales, purchases, dividend etc.), but the capital gains (losses, discountable and other gains) I work out myself from my spreadsheet. I print the activity retort for the full financial year and that becomes my documentation to support my tax returns (which isn't sent to the ATO obviously).

You are correct in that the dividend paid in July does not go into your tax for the year ending June. Separate from the activity report there is a report that lets you know the imputation credits applicable to each dividend received. (I can't remember off hand where to find it - it may be under tax information - but I can let you know of you can't find it yourself). This report is only produced after year end. However, you can always calculate the imputation credit attached to each dividend if you know the franking % and you can get this from several websites including the ASX. I prefer to use http://www.sharedividends.com.au and drill down through the section Dividend History. I usually find that the IB calculation at year end always matches to the cent my own calculation (I work from the franked Percentage on the Dividend History column, rather than the Franking Credit in cents per share column as the latter tends to deviate somewhat due to rounding, which makes reconciling with IB more difficult).

That's how I do it for CGT. Others just print the activity report for the year and hand it to their accountant. That will suffice, but I prefer the extra control my spreadsheet gives and I do my tax myself.
 
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I use IB for my personal account, which for tax purposes is treated under the Capital Gains system and for my company account, which is treated as share trading. I presume you are an investor under the CGT system for tax purposes?

Although IB have excellent reports, I prefer to use a spreadsheet to manage my tax calculations because IB doesn't give me the flexibility I want for determining what block of purchased stock I am selecting for each sale I make. I don't use FIFO or LIFO but determine each sale differently. I update the spreadsheet almost daily, whenever I have activity, so I don't have a monumental tax at year end to get up to date.

So I use the IB Activity report to double check my totals (sales, purchases, dividend etc.), but the capital gains (losses, discountable and other gains) I work out myself from my spreadsheet. I print the activity retort for the full financial year and that becomes my documentation to support my tax returns (which isn't sent to the ATO obviously).

You are correct in that the dividend paid in July does not go into your tax for the year ending June. Separate from the activity report there is a report that lets you know the imputation credits applicable to each dividend received. (I can't remember off hand where to find it - it may be under tax information - but I can let you know of you can't find it yourself). This report is only produced after year end. However, you can always calculate the imputation credit attached to each dividend if you know the franking % and you can get this from several websites including the ASX. I prefer to use http://www.sharedividends.com.au and drill down through the section Dividend History. I usually find that the IB calculation at year end always matches to the cent my own calculation (I work from the franked Percentage on the Dividend History column, rather than the Franking Credit in cents per share column as the latter tends to deviate somewhat due to rounding, which makes reconciling with IB more difficult).

That's how I do it for CGT. Others just print the activity report for the year and hand it to their accountant. That will suffice, but I prefer the extra control my spreadsheet gives and I do my tax myself.
Thank you so much for taking your time writing such a detailed reply. Really appreciated it.
I've always been doing my own tax return because it's generally very simple & straightforward since I didn't have investment then. And my deductions are similar over the years. This year will be the first time I report CGT gain so I'm trying to do some homework before I start working on it. The lucky thing is that I guess coz I didn't invest in Australian stocks, there's no franking dividend involved in my case. But I do have to look at the FIFO & LIFO calc that you mentioned above as I didn't think this would be making a difference. Was just planning to pull the transaction activity list, and get the total of realized gain...
 

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