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I get the share-by-share thing -the share itself has doubled in...

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Tspk

64 Posts.

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25/07/17

17:54

Post #: 26071185
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Originally posted by Tspk ↑

But the definition of a Capital Gain is that it's "an increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price"

In your example, you don't take into account the purchase price.
You spent $100, you made $100.
If the buy price = sell price, how can there even be a capital gain to tax?

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Originally posted by skiptdouglas ↑

Yeah did my head in to begin with ,wait till you buy shares in bundles at different prices .

The way I do it when I submit my returns to the accountant .

I bought 100 shares at 1.00
The shares increased to 2.00
To reduce my exposure I sell 50 at 2.00.
I have made a profit of 50 bucks on those shares . I have have made a capital gain of 50
I then declare that 50 on my tax return . Less any applicable fees etc

When I sell the other 50 I then do the same .

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I get the share-by-share thing -the share itself has doubled in price and that's the gain - but at the end of the day, old mate has less money now than he had before, and he's paying tax on it? How is that supposed to work?
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