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  • #3034
    POR930
    Participant

    Hi Scott, STT already is able to sell shares via FIFO and LIFO, though manually by the user. STT does not seem to possess the ability to Sell by Equalise over all parcels without making multiple SELLS manually, with only one Con Note. Looking forward to next version of STT.

    #3021
    Scott Lindsay
    Keymaster

    Geoff,

    Thanks for your detailed response and analysis in the Sell process for STT and how the reporting is designed.

    We are in the process of building the next version of STT for release in the 1st Quarter, 2019 and will potentially include one or more of these options for creating a Sell within STT.

    FIFO, (ATO preferred)
    LIFO, (Minimises capital gains tax)
    Equalise over all parcels (for performance reporting)

    Thanks
    Scott

    #3017
    POR930
    Participant

    Hi Scott, ok, I answered most of my own question. I ran a report with one company and several buys/sells and the report came out with the same result as my sheet. I uploaded the sheet, so did not get to play with the sells directed to one parcel and see this result, though, maybe STT does not seem to care which parcel. STT does not link buys to sales. Nor does it attempt to work out the ATO rules. It simply says within a date range, these were the shares with a buy and these were those with a sell.

    Getting back to my very first request for averaging over parcels, I would like to see that. This will enable me to carry on with sells this way, and there is a provision in the ATO allowing averaging. As I use this reporting for performance based reporting, averaging will work great.

    You seem to force the sell to one parcel at a time. This maybe fine for the tax payers among your clients, but another option to sell from any open position parcel will help. In another portfolio manager I have, it has 4 options: Sell via,
    To any parcel, (as STT does)
    FIFO,)ATO preferred)
    LIFO, (Minimises capital gains tax)
    Equalise over all parcels (for performance reporting)

    Geoff

    #3016
    POR930
    Participant

    Hi Scott.

    STT looks like it reflects the ATO rules** on BUY/SELL.e.g., I can select any open position to sell from. If that position has insufficient quantity of shares, then I can select a second position, and so on until the sold balance is account for. If I had three parcels, I can choose either Parcel 1,2 or 3. Good. FIFO, LIFO. It will not let me average my sales over the 3 parcels, even though, the ATO say I can do this in limited circumstances. However, I am just talking about reporting, ATO style or Performance Style. I use Performance.

    https://www.ato.gov.au/individuals/tax-return/2017/in-detail/publications/guide-to-capital-gains-tax-2017/?page=32

    I have just looked at the reporting function in STT. This gets to the heart of my issue, as I need performance based reporting, not ATO driven reports. It would seem STT reports reflect BUY costs and SELL costs, and the accountant massage’s the figures into the ATO format?

    But, does STT keep track of the individual BUY parcel(s) linked to the individual SELL transactions and reports as such? or…?

    12/07/2017 BUY Parcel 1. A2M 500 shares @ 7.5000 = $3,750 + brokerage $25.00 = $3,775 or $7.55 per share ownership cost
    21/08/2017 BUY Parcel 2. A2M 100 shares @ 13.7500 = $1,375 + brokerage $25.00 = $1,400 or $14.00 per share
    13/09/2017 BUY Parcel 3. A2M 250 shares @ 14.5000 = $3,625 + brokerage $25.00 = $3,650 or $14.60 per share
    850 shares @ 10.3825 $8,825

    My performance accounting would say the 850 A2M shares cost me $8,825 @ $10.3825 per share. While the ATO view, which I do not need, would reflect as above.

    If I sold 175 shares from any of the parcels, each would have a different ATO profit amount.
    How will STT deal with reporting the transactions?
    I am unsure how STT link the various BUYS/SELLS though out the financial year.

    Anyway, rather than ramble on here, I will set up a test portfolio and create several BUYS and SELLS and see how the reporting function handles it.

    Geoff

    #3005
    Scott Lindsay
    Keymaster

    Hi POR930,

    The Sell process for STT does not allow you to select parts of an open position. It will take only from a single sell is less than the total for the open position.

    I can see the problem that this presents in that you have a total holding in A2M and want the sale you are about to process to be equally divided across both open positions and not specifically allocated to one of them. So the sale in essence is not related to a particular buy rather it is to be taken fro the whole position for A2M.

    Would this then take an average “buy cost” for the sale from a combination of the 2 parcels of A2M stock to use as the basis for the calculation of profit ?

    Is this a typical challenge for your portfolio ? If it is I can see the need for the development of a function that allows for a trader to allocate a sell across all current open positions in equal portions or at some determined allocation to the open positions if that was required.

    Thanks
    Scott

    #2994
    POR930
    Participant

    I am starting to populate STT with my buys and sells. I am trying to work out how to sell shares equally between parcels. For example, I buy 5000 shares in A2M and buy a further parcel of 8000 shares. Then I sell 4550 shares in A2M. I need to share the sell between the two parcels and need only one Con note number. STT does not seem to give me the option of both parcels equally, but rather one parcel or the other, I guess due to the sale being less than either parcel.
    My SMSF is in retirement phase and I do not pay income or capital gains tax. Average costing works great for me. Hence why no interest in managing sales and resultant parcel profit.

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