End of year taxable income calculation, page-15

your sale of 20,000 shares must be reported for tax

you can choose the shares that were sold for your costs base

FIFO (1st in 1st out) will not apply if you have an ordinary share trading account with proper records
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for example:

1/10/18 - 50,000 XYZ shares bought for 20 cents each

1/11/18 - 50,000 XYZ shares bought for 30 cents each

1/3/19 - 20,000 XYZ shares sold for 40 cents each

you could choose 20,000 20 cents shares as your cost base; or you can choose 20,000 30 cent shares as your cost base; or you can chose any combination of 20 cent & 30 cent shares (eg. 14,000 20 cent shares and 6,000 30 cent shares) as your cost base

it all depends on how much tax you wish to pay

if you choose 20 cent shares as your cost base then you pay more tax this year

if you choose 30 cent shares as your cost base, then you pay less tax this year but must be prepared to pay more tax next year (unless the share price falls)
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