Tax - CGT and multiple holdings

questionall_42 · 24 June 2008

Question - I have bought 3 tranches of BHP over the years. I sold one tranche today. Can I choose which tranche to use as my capital base?

E.g.
140 shares @ $10 on 1 Jan 04
120 shares @ $15 on 1 Jan 05
110 shares @ $20 on 1 Jan 06

If I sold 110 shares, can I use the $20 1 Jan 06 as my cost base or do I have to use the earliest date? I couldn't find an answer on the ATO website (obviously not looking hard enough).

Thanks for your help.

sam76 · 24 June 2008

I believe it's on a first in first out basis

son of baglimit · 24 June 2008

with regards to choosing which shares you have sold, its simple - its YOUR choice.

you choose which shares you have sold when calculating CG - theres no 1st in 1st out, no averages - simply you choose.

140 shares @ $10 on 1 Jan 04
120 shares @ $15 on 1 Jan 05
110 shares @ $20 on 1 Jan 06

and heres the teaser - if you want, you can mix it up
110 sold today can be 35 from $10, 35 from $15 and 40 from $20....OR
110 FROM $10.
YOU CHOOSE.
- its all simply IF THEY AUDIT YOU, show them how it was calculated.

http://ato.gov.au/individuals/content.asp?doc=/Content/00104611.htm

its a big doc - you find the page

questionall_42 · 25 June 2008

Thanks SOG - have had a look at this guide, but will obviously have a closer read tonight. Happy tax time everyone!

sam76 · 25 June 2008

son of baglimit said:
with regards to choosing which shares you have sold, its simple - its YOUR choice.

you choose which shares you have sold when calculating CG - theres no 1st in 1st out, no averages - simply you choose.

140 shares @ $10 on 1 Jan 04
120 shares @ $15 on 1 Jan 05
110 shares @ $20 on 1 Jan 06

and heres the teaser - if you want, you can mix it up
110 sold today can be 35 from $10, 35 from $15 and 40 from $20....OR
110 FROM $10.
YOU CHOOSE.
- its all simply IF THEY AUDIT YOU, show them how it was calculated.

http://ato.gov.au/individuals/content.asp?doc=/Content/00104611.htm

its a big doc - you find the page

OOPS, Chuck is good for roundhouses not for accounting.

Broadside · 25 June 2008

sam76 said:
OOPS, Chuck is good for roundhouses not for accounting.

you don't need to worry...the last person to audit Chuck Norris spent 2 years in traction.

Interesting thread, I always assumed it was first in first out too....ahhh the possibilities

Tax - CGT and multiple holdings

questionall_42

sam76

son of baglimit

questionall_42

sam76

Broadside

Similar threads

Privacy & Transparency

Privacy & Transparency