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Working out CGT on shares and reinvested dividends

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Newbie

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Hi,

I have recently sold shares I aquired in the IAG float back in 2000.

Every year I have reinvested the dividend back into more shares so have gone from the orignal 200 at $1.78ea up to the point where I sold 827 at $7.86ea and am now trying to work out the CGT for my 2018/19 Tax return.

How is this done?

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Taxicorn

Replies 1

This can be quite complex and you really need to see a Tax Professional to assist you.

 

Each time you received extra shares that would be a different 'parcel' of shares and you need to know the cost per share and then add to that the ratio of the cost to sell all shares.

 

Eg Selling Brokerage fee = $20 and in total 827 shares = 2.42 cents per share.

 

So your first parcel would be 200 x $1.78 + buying fee (0 if acquired for no cost) + Selling cost per share (2.42 cents  x 200) = $4.83

Parcel 1 (Year 2000) = $356 + $4.83 = $360.83

 

Sold for $7.86 per share = 200 x $7.86 = $1,572

 

Capital Gain on first "Parcel" = $1211.17 x 50% (held longer than 12 months) = $605.59

 

Repeat this for all your remaining years that you received extra dividends.

 

You will probably not be able to claim a 50% discount for the last lot of dividends that you received if less than 12 months until you sold them.

 

Like I said quite complex but if you respond by letting me know the year, number of shares and cost I can help you e.g.

 

Year 2001, 125 shares, Cost per share = $1.99

Year 2002, 145 shares, Cost per Share = $2.25 

........

 

........

Year 2019, 100 shares, Cost per share = $6.99 AND the date you received those and then sold them.

 

 

 

 

3 REPLIES 3

Best answer

Taxicorn

Replies 1

This can be quite complex and you really need to see a Tax Professional to assist you.

 

Each time you received extra shares that would be a different 'parcel' of shares and you need to know the cost per share and then add to that the ratio of the cost to sell all shares.

 

Eg Selling Brokerage fee = $20 and in total 827 shares = 2.42 cents per share.

 

So your first parcel would be 200 x $1.78 + buying fee (0 if acquired for no cost) + Selling cost per share (2.42 cents  x 200) = $4.83

Parcel 1 (Year 2000) = $356 + $4.83 = $360.83

 

Sold for $7.86 per share = 200 x $7.86 = $1,572

 

Capital Gain on first "Parcel" = $1211.17 x 50% (held longer than 12 months) = $605.59

 

Repeat this for all your remaining years that you received extra dividends.

 

You will probably not be able to claim a 50% discount for the last lot of dividends that you received if less than 12 months until you sold them.

 

Like I said quite complex but if you respond by letting me know the year, number of shares and cost I can help you e.g.

 

Year 2001, 125 shares, Cost per share = $1.99

Year 2002, 145 shares, Cost per Share = $2.25 

........

 

........

Year 2019, 100 shares, Cost per share = $6.99 AND the date you received those and then sold them.

 

 

 

 

Devotee

Replies 0

I have done this recently for my MIL. I used a Sharesight, an online share tracker. Not sure what other website are like this. However it does requiring some learning on how to use it so macfanboy’s suggestion may be better.

Newbie

Replies 0

Thanks for your help macfanboy, sounds like I'm off on a mission to find old paperwork.

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