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JD6(Dynamo)Dynamo
1 Nov 2021

If I elect to sell my shares in an off-market buyback (e.g. like the one announced by Westpac today) with the following scenario: -A cost base per share is $25 -The off-market buy back is conducted at $25 per share; with $15 of that $25 being a fully franked dividend distribution and $10 being a capital return distribution When I complete my tax return at the end of the year, would the following be correct? 1. I have a capital loss of $15 per share (i.e. $10-$25) 2. I have $15 of dividend income per share, albeit fully franked so my tax payable is my marginal tax rate less the 30% corporate tax rate

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1,581 views
5 replies

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JodieR_ATO(Community Support)Community Support
3 Nov 2021

Hi @JD6,


If you purchased the shares for $25ea, and they were part of a buy back for $25ea, you don't have a capital gain. However, if you paid any brokerage expenses, these are added to your cost base and you may have a capital loss to report. The dividends are reported elsewhere on your return. This won't affect the CGT reporting.

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Most helpful reply

JodieR_ATO(Community Support)Community Support
3 Nov 2021

Hi @JD6,


If you purchased the shares for $25ea, and they were part of a buy back for $25ea, you don't have a capital gain. However, if you paid any brokerage expenses, these are added to your cost base and you may have a capital loss to report. The dividends are reported elsewhere on your return. This won't affect the CGT reporting.

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