re: i know it is down there sangshim
Neil, I've never free-carry shares on a significant scale and in this CGT climate before and would appreciate some thoughts as to the CGT treatment.
Let's say as an example one bought 10000 GDN shares at $1 each, total consideration $10k. Then, sell 5000 shares at $2 for $10k. Free carry is 5000 shares. At the end of the tax year, is it correct to say net consideration for GDN is zero, CGT for GDN is zero? Then when the free carry is sold after 12 months say at $2 each for $10k, one pays CGT for GDN on $10K (i.e. at half the tax rate according to CGT rules)?
I could ask my tax accountant, but I have lost faith in them recently and am thinking about changing .
GDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
