My broker has asked me to provide average price per share for the parcels of shares I own. All the shares are held in a tax free environment (pension SMSF) and no LIFO,FIFO, Income Tax or CGT is considered. This simplifies things as no tax implication sums are required. Most of my parcels of shares have several buys and sells.
Share valuation is the same regardless of which parcel they are sold from. I am trying to deduce the performance profit/loss rather than a taxable profit/loss. I see many variations on these sums. I imagine in a tax environment, the various tax implications cause the sums to be 'complicated' depending upon sales of shares from the which parcel?
Maybe this small table will help you see the picture. No Brokerage is included in the example. Maybe my excel table really is quite simple, assuming my sums are correct.
Buy Qty= 2500 on January 19th @ $12.00 = $30,000.
Buy Qty=1250 on March 7th @ $14.00 = $17,550
Sell Qty = -1,000 on June 26th @ $16.00 = -$16,000
My sums show the 3,750 shares cost $47,550, less the 1,000 share sold shares for $16,000
$47,550 - $16,000 = $31,550 for the remaining 2,750 shares. $31,550 / 2750 = $11.472
The remaining 2,750 shares have a average price of $11.472
So my broker will show on my profit/loss statement table 2750 shares available for sale
He will also show the average price as $11.472.
This will cause the profit and loss table to indicate the net cost for the holding as units held x net average price..$31,550(approx)
Share valuation is the same regardless of which parcel they are sold from. I am trying to deduce the performance profit/loss rather than a taxable profit/loss. I see many variations on these sums. I imagine in a tax environment, the various tax implications cause the sums to be 'complicated' depending upon sales of shares from the which parcel?
Maybe this small table will help you see the picture. No Brokerage is included in the example. Maybe my excel table really is quite simple, assuming my sums are correct.
Buy Qty= 2500 on January 19th @ $12.00 = $30,000.
Buy Qty=1250 on March 7th @ $14.00 = $17,550
Sell Qty = -1,000 on June 26th @ $16.00 = -$16,000
My sums show the 3,750 shares cost $47,550, less the 1,000 share sold shares for $16,000
$47,550 - $16,000 = $31,550 for the remaining 2,750 shares. $31,550 / 2750 = $11.472
The remaining 2,750 shares have a average price of $11.472
So my broker will show on my profit/loss statement table 2750 shares available for sale
He will also show the average price as $11.472.
This will cause the profit and loss table to indicate the net cost for the holding as units held x net average price..$31,550(approx)
