To calculate the capital gain or capital loss when disposing
of only part of an investment in shares or units, you need to be
able to identify which ones you have disposed of.
This can be
very important because shares or units bought at different times
may have different amounts included in their cost and can alter
the amount of tax you may need to pay.
You may own shares or units that you acquired at different
times, which happens if you increase your investment in a
particular company or unit trust and these may need to be
treated in different ways. For example, when you dispose of any
shares or units you acquired before 20 September 1985, any
capital gain or capital loss you make is generally disregarded.
A common question people ask when they dispose of only part of
their investment is - How do I identify the particular shares
or units I have disposed of?
If you have the relevant records, for example share
certificates, you may be able to identify which particular
shares or units you have disposed of. In other cases, The Commissioner of Taxation will accept your selection of the
identity of shares disposed of.
Alternatively, you may wish to use a "first in, first out" basis
where you treat the first shares or units you bought as being
the first you disposed of.
Our dedicated team can assist you with queries relating to
how Capital Gains Tax can affect your shares. Complete
and submit the Express Enquiry form on the top right hand side
of this page and we will contact you to discuss your enquiry
or call us on 1300 QUINNS (1300 784 667) +61 2 9223 9166 to arrange an