Shares & Funds What do you need for tax return when you own shares?

Discussion in 'Accounting & Tax' started by Jmillar, 9th Jul, 2020.

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  1. Jmillar

    Jmillar Well-Known Member

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    Hi all,

    I bought shares for the first time last FY. I bought them all through Commsec except for NAB shares through the SPP.

    Firstly, not sure if this is relevant to the FY19/20 given I've only purchased and haven't sold anything or received dividends..?

    What sort of statement do I need to give my accountant? I'm guessing Commsec won't show dividends and shares purchased in SPP so won't be conclusive. Do I have to get a statement from each of the share registries (computershare, link etc)?

    Thanks
     
  2. Mark F

    Mark F Well-Known Member

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    If you have only purchased shares and not sold any and no dividends including SPP then no need to do anything.

    Shares received in a SPP are actually a dividend (hopefully with franking credits). Oops. Thinking of dividend reinvestment.

    Your CommSec statement will show shares added by the SPP assuming you are broker sponsored.
     
    Last edited: 9th Jul, 2020
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  3. The Y-man

    The Y-man Moderator Staff Member

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    Keep your contract notes!

    The Y-man
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    1. Contract notes
    2. The dividend recently paid was paid in early July and wont impact 2020 tax.
    3. The SPP is effectively a contract acquiistion. Use the qty x issue price NOT the amount subscribed - since ist was scaled back

    The share registry has the SPP, div matters and a history of movements. The contract notes etc can then support the + and - for each qty. Thats basically what the ATO look for if reviewed.

    Importantly ensure gains when calcualted are split between those under 12mth and those 12mth+. Excel can be helpful. Commsec reports are sh17 eg no SPP info.
     
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  5. willair

    willair Well-Known Member Premium Member

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    If the recent Nab spp purchase is linked with your commsec account then everything you need for your accountant will be on your statements page or your accountant will already have it on file the one we use does..imho..
     
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  6. Jmillar

    Jmillar Well-Known Member

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    Great thanks for your help. What about when you start receiving dividends? Will CommSec statement show that?

    And I'm guessing if you use multiple brokers you will need to show a statement from each, for each FY?
     
  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Ummm not it wont. The 2020 acquisitions and sales will appear in 2020, the SPP wont appear at all but will reflect in the portfolio and the 2021 sales will apear in 2021. And there is no calculated profit or loss requiring the adviser to manually do this. Commsec income reports are wildly inaccurate for non-share income eg ETFs, Managed Funds etc and if a dividend is paid with a return of capital you could end up paying excessive tax.
    The SPP has a issue date of 2 June 2020 at a price of $14.15

    PS : I also have NAB and participated in the SPP and make this observation as a tax adviser familiar with Commsecs basic info and also my own NAB situation. I use Excel to fill the gap as most do. Commsec online does not show the SPP and unlike the Commsec Adviser Services platform the app and basic website dont allow the manual alteration of historical cost.at present in the base platform.
     
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  8. Jmillar

    Jmillar Well-Known Member

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    Excuse my ignorance but what are contract notes?
     
  9. willair

    willair Well-Known Member Premium Member

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    With the dividends yes with commsec,and as i only use one broker much the same..imho..
     
  10. willair

    willair Well-Known Member Premium Member

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    I think you are right ,i mixed it up as i did check the day after the SPP went through but it may have not been commsec..
     
  11. SatayKing

    SatayKing Well-Known Member

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    A contract to exchange the shares for money or vice versa. This is what your broker sends you and is known as a Contract Note.
     
  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Broker issues these for each buy / sell. In Commsec they are emailed but under menu Trading / Confirmations you can d/load each contract note again. You can also D/load a CSV file summmry and rework it using excel as a summry of profits and losses. You may need prior year data ? Give that summary to tax agent and it may save $$ (should save $$$). If they do it they will charge you for the time. Tax adviser wont need contract notes. They are your records for retention
     
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  13. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    A SPP is managed by the share registry, not a broker. Some brokers will add the event and many wont. Comsmec dont. They just update your holding qty
     
  14. Jmillar

    Jmillar Well-Known Member

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    Thanks everyone. I do get the invoices emailed to me from Commsec so will save them.
     

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