ASX Shares CGT

Discussion in 'Shares & Funds' started by hash_investor, 22nd Apr, 2019.

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  1. hash_investor

    hash_investor Well-Known Member

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    Guys, if I sell something on a profit but buy something else on the share registry is that still a CGT?
     
  2. Gockie

    Gockie Problem solver Premium Member

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    You'd have to sell an investment at a loss in the same tax year to offset the capital gain.
     
  3. SatayKing

    SatayKing Well-Known Member

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    Sell and make a profit on sale CGT applies. Held for 12 months or more then under current taxation arrangements 50% of CG is included in your return. That's my understanding of the situation.
     
  4. Terry_w

    Terry_w Broker, Lawyer, Tax advisor, Debt Recycle advisor Business Member

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    Yes
     
  5. geoffw

    geoffw Moderator Staff Member

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    I'll ask a further question.

    I buy say $20,000 shares in a company. I keep them for two years, then by $20,000 in the same company. Six months later, I sell $10,000 worth and make a profit.


    Does to 50% discount on CGT apply to the sale? Does the ATO regard that I've sold.from the first parcel, or from the second?
     
  6. Terry_w

    Terry_w Broker, Lawyer, Tax advisor, Debt Recycle advisor Business Member

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    No 50% discount for companies
     
  7. Harry30

    Harry30 Well-Known Member

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    Are we talking here about 1) investment in a company (ie shares) compared with 2) investment by a company. 50% discount applies for 1 but not 2.
     
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  8. Terry_w

    Terry_w Broker, Lawyer, Tax advisor, Debt Recycle advisor Business Member

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    Yes I may have misinterpreted.

    If the owner of the shares is a company then no discount CG. If shares of a company are purchased by an individual it would usually apply
     
  9. geoffw

    geoffw Moderator Staff Member

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    I'm talking about myself, as a person, buying two parcels of shares.

    Does CGT discount apply to the parcel of shares I sold?

    So does the ATO treat my sale as being from the parcel I've held for more than 12 months, or from the parcel I've held less?
     
  10. Terry_w

    Terry_w Broker, Lawyer, Tax advisor, Debt Recycle advisor Business Member

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    I have written a tax tip on this. It depends is the answer. If you can identify the shares sold there is no issue but if you can't there may be various ways to work it out
     
  11. Fargo

    Fargo Well-Known Member

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    The CGT will apply in order of purchase unless stipulated otherwise. Fist bought, are first sold. It is one reason to buy in tranches.
     
  12. Islay

    Islay Well-Known Member

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    @geoffw when I buy shares I record date of purchase, number of shares bought, share price (also brokerage, gst and total price) for each purchase. When I sell I do the same but I nominate which shares I am selling from the shares I hold. This way I can maximise my capital gain or loss that best suits my tax position at the time. The trick is to have very good records and be able to show exactly what you have done. I do use software to do this but a good excel spreadsheet would work well too. Our accountant does the rest. 50% CGT will apply only to the shares you have held for more than 12 months
     
    Last edited: 23rd Apr, 2019
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  13. Fargo

    Fargo Well-Known Member

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    It the 2nd tranche was purchased at a higher price it maybe beneficial to stipulate that they are sold first.
     
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  14. Fargo

    Fargo Well-Known Member

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    Why bother? It gets recorded anyway. All you need to do is click on the Confirmation tab on in your trading account to get dates, trades and contract notes.
     
  15. Islay

    Islay Well-Known Member

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    Because I answered someone else’s question. Some of my share holdings are pre 2000 and no you can not just click on confirmation tab in trading account and get accurate formation for older trades.