Selling lots of shares - do they have to be in order of purchase?

[i4ever]

Hi All,

I recently sold a portion of shares of a company that I have been adding to for a few years.

For example, 100 lots of ABC shares in 2009, 200 lots in 2010, 200 in 2011.

If I sold 200 shares, do I declare the tax based on the purchase date? Or can I pick whichever year would be beneficial for me?

For example, the 2009 ones are at a profit, but the 2011 ones are at a loss, so would be better to declare the losses first. Or does it have to be based on which ones I bought first, so 100 in 2009, and 100 from 2010?

I hope I am clear enough

Thanks

 

[craft]

Hi All,

I recently sold a portion of shares of a company that I have been adding to for a few years.

For example, 100 lots of ABC shares in 2009, 200 lots in 2010, 200 in 2011.

If I sold 200 shares, do I declare the tax based on the purchase date? Or can I pick whichever year would be beneficial for me?

For example, the 2009 ones are at a profit, but the 2011 ones are at a loss, so would be better to declare the losses first. Or does it have to be based on which ones I bought first, so 100 in 2009, and 100 from 2010?

I hope I am clear enough

Thanks

You get to pick.

 

[burglar]

Hi All,

I recently sold a portion of shares of a company that I have been adding to for a few years.

For example, 100 lots of ABC shares in 2009, 200 lots in 2010, 200 in 2011.

If I sold 200 shares, do I declare the tax based on the purchase date? Or can I pick whichever year would be beneficial for me?

For example, the 2009 ones are at a profit, but the 2011 ones are at a loss, so would be better to declare the losses first. Or does it have to be based on which ones I bought first, so 100 in 2009, and 100 from 2010?

I hope I am clear enough

Thanks

Learn all you can about CGT, especially from the Australian Tax Office.
When you ask here on ASF you get opinions, mostly well worded, mostly well meaning.
It's not rocket science.
But there are nuances with CGT.

The 2009 are at profit and held longer than one year.
Therefore they attract a discount of 50%
(Having only 100 of them you would need to put 100 from elsewhere.)
Losses can offset profits to minimise tax payable.
Accumulated losses are carried forward.
Capital Gains Tax is payable at your marginal income tax rate.
(are you expecting to move to a higher tax bracket any time soon?)

This makes it difficult to be find the best way forward.

 

[i4ever]

Thanks, guys. Lots of calculations to do for next year!

 

[mistersmith14]

For me organized work results positively.