CGT management - greater flexibility

Guys, it would be great to get some more flexibility around CGT management. I.e. being able to nominate specific parcels of shares when entering a sale. I am finding the blanket categories (LIFO, FIFO, etc.) fairly restrictive/inflexible.

Cheers
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  • Hi Jesse,

    Thanks for the idea. We know that the predefined sale allocations can sometimes be restrictive.

    We're also keen to come up with a solution that still gives you the option to set the sale allocations at year end in order to optimise your overall CGT position rather than having to specify it at the time of the sale.

    Improvements in this area are definitely something that we'll be looking at in the future.
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  • Hi Scott,

    Not sure how good my feedback/suggestion will be but since you asked me on the other thread... :)

    I guess how i would see it working would be to incorporate the parcel selection when you "Enter a new Trade" and then select "Sell". It would keep all the details you have on this page but take it further to include all the current parcels for that stock. You could list the parcels after the Sell details are entered, so instead of hitting Save, have a next button. At this time, all the stock parcels come up with a check box next to them in order to select that parcel for sale. A useful feature of the parcel listing would be to incorporate the proposed Sell details just entered with the CGT outcome and when you were happy with your parcel selections hit save. To ensure any possible changes at end of year it would be beneficial to be able to go into that trade a make a change. Much the same as the option you have now of changing to FIFO, LIFO etc at any time. Back on the "Trades & Adjustments" screen you would see just one Sell trade regardless of how many parcels you sold so that if you decided to make a change all the details related to that Sell trade would come up on the one screen. I hope that makes sense!!!
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  • We're about to start working on this so I wanted to outline our proposed solution - all feedback is welcome!

    Firstly, you'll be able to set the sell allocation method (FIFO, LIFO, Minimise, Maximise, Tax minimise) per shareholding as you can do presently.

    At the end of the year (or at any time during the year), you'll be able to change the allocation method to dynamically recalculate the sell packets. This means that at the end of the year you can play around with the allocation method in order to achieve a desired tax result. When you have the allocations set the way that you want, you'll then be able to lock in the positions so that they can no longer be altered. Essentially we'll be setting a 'lock date' and saving the sell packets to the database.

    This means that for the next year you'll again be free to alter the sell allocation method, knowing that you'll only be recalculating your open positions and not recalculating any historic sell packets. You'll then be able to lock in the positions once more.

    This approach means that you can optimise your sell allocations for CGT at the end of the year rather than having to worry about recording your sell packets each time you sell shares. Apart from being simpler, this means that you're setting the CGT allocations when you have the full picture available. It also means that we can continue to record trades received directly via the broker or via email contract notes as we don't have to record a sell allocation when recording the sell trade.
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  • This all seems fine - at the end of the day as long as we have the option to pick which parcel is being sold.
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  • Hi Scott

    Please could you provide an update on this.

    Thanks

    Glen
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  • Sorry for the lack of updates here, we've had a couple of unplanned delays but rest assured a beta release is on the way soon!
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  • I'm pleased to announce that we have just released our new CGT reporting functionality to beta group users!

    If you are an Australian beta group customer please check your inbox for my latest beta group update email.

    If you're not a beta group customer but would like to preview the new functionality, please email me (scott@sharesight.com) and I'll add you to our beta group
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  • Hi Scott,

    I like the concept in particular if your only selling part of the holding... I think you may be able to apply some of the same technique to transfer a loss between one year and another as this also effect CGT. Hopefully this is your next step.

    Thanks

    Mike Deam
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  • This reply was created from a merged topic originally titled DRP first out.

    I have recently sold a number of shares that were origionally purchased as part of a DRP, this is to simplify things from a tax point of view.
    Anyway, is there a way to set up reports to see the last sell trade as DRP shares?
    There is one holding where i was issued shares under the DRP, then i purchased additional units, then i recieved further DRP shares. However no method currently available (first in first out etc.) Allows me to sell DRP shares first.

    Thanks
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