Capital gain calc for transferred in shares

[amsadl]

Years ago I transferred in some shares and set their value to the number of shares x the average cost.

I've just sold some of them and the Capital Gains report is calculating the cost base as $1 per share, and not the average cost in the transfer transaction. I've tried specifying the lot in the sale transaction and setting the report to specific lot, I've tried setting the OOP Cost value to the value of the transfer in and I've tried setting the report to FIFO. All come up with the same $1 per share cost base.

I know there's been discussion of this before, but I can't for the life of me find a way to do the CG calculation the way I would do it manually i.e. sale value less (shares x average cost).

What am I missing

[Mark]

Hi amsadl,

On the "Transfer In Shares" dialog box there is a section for "Tax Cost Basis:". You can set both the "Date Acquired" and "Value". This is what the Capital Gains report will use for the cost basis when you sell these shares.

[amsadl]

My transfer in txn has the tax cost base as 9850.14 for 666 shares @ 14.79

I sold 171 shares

the Capital Gains report shows a cost base of 1445.2 which is exactly 10% of the total sale value and an average cost of only 8.45. I've tried specifying lots and also FIFO and also setting the OOP cost and market values to 9850.14 but get the same result:

Capital Gains
Wesfarmers 1/8/01 - 1/7/25

Investment Shares Bought Sold Term Sell Value Cost Basis Gain/Loss
Wesfarmers 171.000 1/8/01 30/6/25 Long 14,520.57 1,445.20 13,075.37

[Mark]

Hi amsadl,

The Market Value/OOP in the Transfer In dialog aren't related to the used cost basis. Only the cost basis date/value are relevant. Does the "Bought" date shown in the Capital Gains report match with your cost basis date in the Transfer In. Do you have other buys or transfer ins that could be getting sold instead of the transfer in you're expecting?

If you're still having troubles, you can email me the one *.dat investment file in question, and I can take a closer look.

[amsadl]

Yes the date of the transfer in is the same as the bought date on the CG report.

There's only one other transaction for the share, a small dividend reinvestment and the report is not using the price on that.

I'll email you the dat file

Thanks

[Mark]

Hi amsadl,

Thanks for sending the data file. The reason the cost basis is lower than you were expecting is because you have 2 relatively large "Return of Capital" distributions. These RofC distributions returned about 41% of your cost basis, so the cost basis is lowered by this much.