Hi everyone
Just trying to sort out my taxes and as I have sold my shares within the last couple of years I need to get this sorted - I tried to speak with the ATO about this last financial year but they didn't give me any help at all hence why I thought asking on here could help me at least get my head around what I need to be doing (or have some idea about what to go to an accountant about)
My grandfather died at the end of August 1985 (prior to CGT) leaving me (or I should say gifting me) with 214 shares. These were issuer sponsored holdings with BHP (as it was then) under a guardian's name (i.e. my uncle) with my name listed as the account name (which is the same as it was for all 14grandchildren that were given shares).
Between 21/9/1985 and 8/7/2001 the issuer sponsored holding in this accout grew to 728 (an additional 514 shares over and above the original allocation) through dividend reinvestment and purchase of additional shares (my parents putting in the money).
9/7/2001 BHP merged with Billiton and all share holders received a bonus issue - in my case the issue sponsored portfolio gained 776 shares taking the total to 1504; which is 1290 more than the original allocation. At this point, the portfolio was still listed under my uncle's name.
On 30/10/2009 an off-market transfer (?) was done and the share portfolio came under my name in full. The shares became CHESS holdings with ETrade and I intended to sell them in the near future. The current market value of 1504 shares on this date was $56,324.80
12/11/2009 - after two weeks of holding them in my name, I sold 1004 shares for the sum of $39,658 leaving me with 500 shares.
26/07/2010 - after almost 9months in my name (and in a new financial year for only a month), I sold the remaing 500 shares for a sum of $19,959.10
Given the value of the shares when they were transferred to me, versus the amount they were sold for, this would leave me a profit of $3286.31
NB. All dividends, including those before 30/10/2009 were paid to me and declared as part of my income for each tax return..
So essentially, what I am hoping to clarify is:
1. Do I pay CGT on the entire holding after 20/09/1985 or only since 30/10/2009 when they came ino my name?
2. Do I declare the dividend reinvestment and bonus issus as capital outlaid in the acquisition of these shares or not as they were under my uncle's name?
3. If no, to point 2, does that mean I technically to not have any capital base costs for these shares (with the exception of the $46.89 in selling fees)
I realise this post seems long winded and I know any advice should be confirmed with a finance professional, but I would just really like some guidance as to what I need to be considering when tackling this issue.
Thanks in advance for your responses.
Just trying to sort out my taxes and as I have sold my shares within the last couple of years I need to get this sorted - I tried to speak with the ATO about this last financial year but they didn't give me any help at all hence why I thought asking on here could help me at least get my head around what I need to be doing (or have some idea about what to go to an accountant about)
My grandfather died at the end of August 1985 (prior to CGT) leaving me (or I should say gifting me) with 214 shares. These were issuer sponsored holdings with BHP (as it was then) under a guardian's name (i.e. my uncle) with my name listed as the account name (which is the same as it was for all 14grandchildren that were given shares).
Between 21/9/1985 and 8/7/2001 the issuer sponsored holding in this accout grew to 728 (an additional 514 shares over and above the original allocation) through dividend reinvestment and purchase of additional shares (my parents putting in the money).
9/7/2001 BHP merged with Billiton and all share holders received a bonus issue - in my case the issue sponsored portfolio gained 776 shares taking the total to 1504; which is 1290 more than the original allocation. At this point, the portfolio was still listed under my uncle's name.
On 30/10/2009 an off-market transfer (?) was done and the share portfolio came under my name in full. The shares became CHESS holdings with ETrade and I intended to sell them in the near future. The current market value of 1504 shares on this date was $56,324.80
12/11/2009 - after two weeks of holding them in my name, I sold 1004 shares for the sum of $39,658 leaving me with 500 shares.
26/07/2010 - after almost 9months in my name (and in a new financial year for only a month), I sold the remaing 500 shares for a sum of $19,959.10
Given the value of the shares when they were transferred to me, versus the amount they were sold for, this would leave me a profit of $3286.31
NB. All dividends, including those before 30/10/2009 were paid to me and declared as part of my income for each tax return..
So essentially, what I am hoping to clarify is:
1. Do I pay CGT on the entire holding after 20/09/1985 or only since 30/10/2009 when they came ino my name?
2. Do I declare the dividend reinvestment and bonus issus as capital outlaid in the acquisition of these shares or not as they were under my uncle's name?
3. If no, to point 2, does that mean I technically to not have any capital base costs for these shares (with the exception of the $46.89 in selling fees)
I realise this post seems long winded and I know any advice should be confirmed with a finance professional, but I would just really like some guidance as to what I need to be considering when tackling this issue.
Thanks in advance for your responses.
