The importance of good record keeping of your share portfolio

Selling some or all your shares means that there are capital gains issues to be taken into consideration as any gains are included in your taxable income in the year of the sale.

Therefore, good record keeping is essential. These days the ATO is notified about share sales; details of the entity, date of sale and the proceeds realised are included in the ATO Prefill report.

To work out the capital gain applicable, the original purchase price and date of purchase, including any subsequent Dividend Reinvestments, is required.

This purchase information is not available from the ATO. We must obtain the necessary details from you which is made easier if your records are complete and up to date.

Not only should the purchase details be recorded; any notifications of company mergers/demergers, schemes of arrangements, share conversions and bonus share allocations should also be retained as they can affect capital gains calculations.

Please do not hesitate to contact us if you have any queries – we are here to help you