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Re: Mytax and Dividend Reinvestment plans

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Initiate

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Hi.  I bought a batch of shares in 2013 and opted for dividend reinvestment.  Over the past several years I've received seven batches of new shares in lieu of cash dividends.  I sold the lot this year in one go, so I have to do a capital gain event.  I use Mytax but I don't know how to enter the batches that have been added on over the years.  Do I have to enter each batch as a separate CGT event, with a different purchase date (entering the dividend value as the cost each time), and allocating the proportion of the sale price (and brokerage cost to sell)  to each batch?  Sorry if that's not very clear.  I tried doing it as one CGT event but that doesn't seem right as it doesn't allow me to enter a date for each dividend/allocation.

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Best answer

ATO Certified

Community Support

Replies 1

Hi @Dresden2000,

 

Welcome to our Community!

 

The short answer is yes, you will need to enter each batch as a separate CGT event in your tax return. Follow the steps below to enter each CGT event separately into myTax.

 

Once you are in myTax, under the ‘Prepare return’ section:

  • 'Capital gains or losses, then select ‘Add/Edit’
  • Selecting the ‘CGT record keeping tool’ this tool will work out basic gain or loss events.
  • Fill out the top section and then select 'Add'. This is where you will add each separate event. When you have entered all the information relating to one event, select ‘Save CGT event’ and simply select ‘Add’ to repeat the process and add as many events as you need.
  • Once you have entered all your CGT events select ‘Calculate’ and the system will work out all the information you have entered and provide you with the ‘Total current year gain’, ‘Net capital gain’ and ‘ Capital loss to be used in the future’ figures.
  • Select ‘Save to myTax’ and the system will transfer those figures into your return for you.

If at any stage you require help, you can select the ‘? Help’ to the right of the screen, and it will take you to the relevant information and helpful videos on our website.

 

If you have any further questions you can phone us on 13 28 61 between 8am – 6pm, Monday to Friday for more tailored assistance.

Hope that helps!

5 REPLIES 5
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Superuser Registered Tax Practitioner

Replies 2

Hi Dresden2000

 

You should have included reinvested dividends in the tax year received. This ATO page explain how it works.

 

One Stop tax
Tax Return and Taxback Specialist
www.onestoptax.com.au

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Initiate

Replies 1

I did declare them in the years I received them.  The ATO gives an example that shows that I had to do that, but that I still need to include them in CGT calculations.  That's what I need to do now, and what I'm asking about.

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Superuser Registered Tax Practitioner

Replies 0

In this case you need to enter each batch as a separate CGT event, with a different purchase date (entering the dividend value as the cost each time).

 

One Stop tax
Tax Return and Taxback Specialist
www.onestoptax.com.au

Highlighted

Best answer

ATO Certified

Community Support

Replies 1

Hi @Dresden2000,

 

Welcome to our Community!

 

The short answer is yes, you will need to enter each batch as a separate CGT event in your tax return. Follow the steps below to enter each CGT event separately into myTax.

 

Once you are in myTax, under the ‘Prepare return’ section:

  • 'Capital gains or losses, then select ‘Add/Edit’
  • Selecting the ‘CGT record keeping tool’ this tool will work out basic gain or loss events.
  • Fill out the top section and then select 'Add'. This is where you will add each separate event. When you have entered all the information relating to one event, select ‘Save CGT event’ and simply select ‘Add’ to repeat the process and add as many events as you need.
  • Once you have entered all your CGT events select ‘Calculate’ and the system will work out all the information you have entered and provide you with the ‘Total current year gain’, ‘Net capital gain’ and ‘ Capital loss to be used in the future’ figures.
  • Select ‘Save to myTax’ and the system will transfer those figures into your return for you.

If at any stage you require help, you can select the ‘? Help’ to the right of the screen, and it will take you to the relevant information and helpful videos on our website.

 

If you have any further questions you can phone us on 13 28 61 between 8am – 6pm, Monday to Friday for more tailored assistance.

Hope that helps!

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Initiate

Replies 0

That's exactly what I needed, thank you.