"4. If the parcel was held for more than 12 months then remember that only 50% of the gains are added to taxable income..."
If you have a combination of gains and losses, and some of those gains are held for > 1year and some are <1 year, can you still claim the full 50% discount off the shares that are held longer than 12 months, or is it averaged down against the capital losses?
The reason I ask this is because the ATO state that losses are deducted from gains before the 50% discount(s) can be applied.
Worked Example:
Company A - Bought $10,000 and sold all of them for $20,000 and held for >12 months (50% discount)
Company B - Bought $10,000 and sold them for $20,000 and held for short duration (no discount)
Company C - Bought $10,000 and sold them for $2000.
Would the Capital Gain be:
A) $7,000 [10,000 + 10,000 - 9,000 - $5,000 discount]; or
B) $9,000 [10,000 + 10,000 - 9,000] x (15,000/20,000)
The 15,000/20,000 figure comes from that only 15K out of the 20K is taxable.
I'm assuming that this is the correct method because otherwise what would be the point of deducting the losses from the gains prior to applying the discount.
