How is a year measured?

[RamonR]

I bought some shares on 11/7/08 and sold them on 13/7/09.
My spreadsheet tells me I have had them 362 days.

Have I had these shares 1 year for Capital Tax purposes.

 

[skc]

Re: How is a year measured.

I bought some shares on 11/7/08 and sold them on 13/7/09.
My spreadsheet tells me I have had them 362 days.

Have I had these shares 1 year for Capital Tax purposes.

Your spreadsheet calculation is wrong... or you had typo in your post.

Correct answer 367 days. Which should be over 1 year regardless of how CGT treat 1 year.

 

[jono1887]

did you take into account that 08 was a leap year?

 

[beamstas]

You held them 367 days
Claim it as having a capital gains discount,
If you get audited show that you had them for 367 days which is greater than one year.

 

[Timmy]

You held them 367 days
Claim it as having a capital gains discount,
If you get audited show that you had them for 367 days which is greater than one year.

Yep.

I bought some shares on 11/7/08 and sold them on 13/7/09.
My spreadsheet tells me I have had them 362 days.

& get a better spreadsheet

 

[Trembling Hand]

& get a better spreadsheet

Maybe another business in this untapped opportunity Timmy?

 

[skc]

Maybe another business in this untapped opportunity Timmy?

What? Combining the average cost feature with holding duration?

I fear your typical desktop computers will not have enough power for such calculations.

 

[Timmy]

TH, I did suspect the Chinese government of having bugs in my software development department, but not you too!

Ah well, the cat is out of the bag, here is my until now secret spreadsheet especially designed for investors on the ASX who do not want to be subject to CGT.

I was going to sell it to Goldmans but they said "What's an ASX?"

 

[Aurum]

Which spreadsheet program was you using? Whichever it is, I would throw it away.

Mike.

 

[Timmy]

Combining the average cost feature with holding duration?

I didn't think of that.
BRB

 

[beamstas]

Just be careful selling it to goldman..
It may be public sooner than you think

 

[Kez180]

Lol I have found a fatal flaw in your spreadsheet... it is still half the CGT for them....

 

[Timmy]

Lol I have found a fatal flaw in your spreadsheet...

Just the one?

 

[drsmith]

I bought some shares on 11/7/08 and sold them on 13/7/09.
My spreadsheet tells me I have had them 362 days.

Have I had these shares 1 year for Capital Tax purposes.

The ATO does not count the day of aqusition or disposal as part of the holding period.

In determining whether you acquired the CGT asset at least 12 months before the CGT event, both the day of acquisition and the day of the CGT event are excluded.

Example

Sally acquired a CGT asset on 2 February 2008. If a CGT event happened in relation to that asset before 3 February 2009, she had owned it for less than 12 months.

If the CGT event happens on or after 3 February 2009, then she has owned the asset for more than 12 months.

http://www.ato.gov.au/individuals/content.asp?doc=/content/36542.htm

Based on your dates above you are entitled to use the discount method with a day to spare.

 

[drsmith]

Ramon,

I'm trying to fathom how having purchased and disposed of shares on the above dates the total days held comes up to 362.

For both the purchase and disposal, what days were the orders were executed and what days were they settled ?

 

[RamonR]

I'm trying to fathom how having purchased and disposed of shares on the above dates the total days held comes up to 362.

For both the purchase and disposal, what days were the orders were executed and what days were they settled ?

Days mentioned would have been execution date.
I think error in spreadsheet calculation is problem here.