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Capital Loss Calculation Method?

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Hi Everyone. I bought two lots of shares on the ASX of the same company in early March 2019 and December 2019. I then sold both lots of shares for a loss in one transaction in late March 2020. 

 

I was wondering if the discount or the 'other' method of capital gain/loss calculation would apply. I'm confused because I held one lot of the shares for more than 12 months which means discount method. However, I also held some for less than 12 months which is 'other' method. This is confusing because I sold both in one transaction (with one set of brokerage costs).

 

Do I treat them as one asset? Or do I treat them as two separate assets and if so I'm unsure how I would divide the final sale brokerage into the costs. The initial acquisition of each were different in the number of shares but similar in terms of value.

 

TLDR: purchasing shares at different points and then selling them at once where it seems both discount or 'other' method would apply to calculating capital gain/loss. 

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Hi @Rofus,

 

Thanks for reaching out to us. The information we provide in the community is general only. If you need specific information relating to your circumstances, you may need to contact us.

 

The discount method and other method apply to capital gains, not losses. There is information on the website about capital gains tax in relation to shares. There is also a worksheet available which may help you work out your capital loss.

 

Generally, parcels of shares purchased at different times are separate CGT assets, even if sold at the same time, so you need to work out the capital loss for each parcel.

 

Hope this helps.

 

Regards

RochL

 

1 REPLY 1
Highlighted

Best answer

Community Support

Replies 0

Hi @Rofus,

 

Thanks for reaching out to us. The information we provide in the community is general only. If you need specific information relating to your circumstances, you may need to contact us.

 

The discount method and other method apply to capital gains, not losses. There is information on the website about capital gains tax in relation to shares. There is also a worksheet available which may help you work out your capital loss.

 

Generally, parcels of shares purchased at different times are separate CGT assets, even if sold at the same time, so you need to work out the capital loss for each parcel.

 

Hope this helps.

 

Regards

RochL