Quickie Tax Question

[white monkey]

Hi All,

When calculating CGT, just wondering what i do with brokerage fees on the purchase of shares, for which i only sell a portion in that financial year.

i.e. The situation where i purchase some shares, and sell half at a profit keeping the rest.

many thanks in advance

WM

 

[Whiskers]

Hi All,

When calculating CGT, just wondering what i do with brokerage fees on the purchase of shares, for which i only sell a portion in that financial year.

i.e. The situation where i purchase some shares, and sell half at a profit keeping the rest.

many thanks in advance

WM

I believe each individual share is classed as an asset for CGT, not the bundle of shares. Therefore each share has a cost base and you would apportion the brokerage on a per share basis.

Have a look for the CGT guide on the ATO site to check.

EDIT: this link should help. http://www.ato.gov.au/individuals/content.asp?doc=/content/36542.htm