Apologies but normally i do my tax by myself and it is simple.
But … i got shares when i was employed by IAG. I then left IAG in October 2021 and sold $13k worth of IAG shares that I originally received a few years before.
How do I work out what/if i pay CGT on these shares?
I believe there is an ESS calculator on the ATO website
Congratulations to toshjammi for being the only correct responder in the thread - Employee Share Schemes are a tricky beast to get right.
Not true what they say about me after all…
Not an accountant, so have no idea what I'm saying.
1) Take the value of the shares at acquisition.
2) Take the value of the shares at disposal
3) Apply 50% discount on difference because you've held them for more than 12 months.
4) Pay CGT on the discounted amount.
3) Apply 50% discount on difference because you've held them for more than 12 months.
Doesn't apply here, not held for 12 months.
I assumed that because OP said, " I originally received a few years before."
a few years sounds like > 12 months
I was replying to the question asked in the title.
How do I calculate Capital Gains Tax on shares i bought in October?
I assumed they were bought in Oct 2021
@jv: Ahh - I assumed Oct 2021 was the disposal time when they left IAG.
In any case; the OP can make the determination of whether they qualify for the 50% discount or not.
What if I bought a 15 shares 2 years ago, and 10 shares this year. then sell and sold 5 from a same company. How does ATO knows which one I sold, the one I got now or 2 years ago?
ATO says to use FIFO method. The 5 sold would go against the 15 purchased 2 years ago in your example.
Thank not so accountant :)
Not advice, but you can use a few different methods (FIFO, LIFO, HPFO etc.), FIFO is easiest and you need to be consistent in usage. In the example provided FIFO is a no-brainer if you're looking to reduce CGT on the sale
How do I work out what/if i pay CGT on these shares?
Tax is calculated on the total profit at your top tax bracket + medicare levy…
Login to your share register to find out what the value of those shares are - add them up in a spreadsheet.
Deduct that from whatever you sold them for. Discount by 50% if held >12 months. That amount then gets added to your income.
Deduct that from whatever you sold them for. Discount by 50% if held >12 months. That amount then gets added to your income.
You can also deduct any fees
Call an accountant and make an appointment to spend some of the profit.
Nah why pay someone $200 when you can get it free on Ozb, do it yourself incorrectly costing yourself thousands.
/s
Heading says bought, body of text says sold. Which is it?
If the shares were received as part of an employee share scheme, and it was a taxed-upfront scheme, then you would have had to declare the discount you received for the shares in your tax return in the year you received them. The cost base of the shares would then be the market value at the time you acquired them.
Your capital gain or loss calculation when you sell them will then be the proceeds from the sale, minus the cost base (including selling costs like brokerage). Apply other capital losses (if you have) to the gain. Then apply capital gain discount of 50% if applicable.
Not tax advice. Assuming it wasn't a tax-deferred share scheme.
If you send me the 13k then I can fix it all up for you